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Jimmy Aki
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Jimmy Aki
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Mohammed Azharuddin Chhipa, a 35-year-old resident of Springfield, Virginia, has been convicted for crypto terrorism funding to the Islamic State of Iraq and al-Sham (ISIS).
According to the United States Department of Justice (DOJ), Chhipa sent $185,000 worth of cryptocurrency to ISIS members in Syria between October 2019 and 2022.
Court evidence revealed that the funds were used to support ISIS operations, including financing the escape of detained female members from prison camps and aiding fighters on the battlefield.
Chhipa raised funds through social media platforms, electronic bank transfers, and in-person cash collections. The money was then converted into cryptocurrency and smuggled through Turkey to ISIS contacts in Syria.
The DOJ confirmed that Chhipa worked closely with a British-born ISIS member who resides in Syria. This co-conspirator was instrumental in facilitating the movement of funds and coordinating efforts to finance prison escapes and terrorist attacks.
In a statement regarding the conviction, DOJ Assistant Attorney General Matthew G. Olsen explained that the defendant sent out over $185,000 in cryptocurrency.
The charges brought against Chhipa include one count of conspiracy to provide material support to a designated terrorist organization and four counts of providing and attempting to provide support.
In combination, the offenses carry a maximum sentence of 100 years in prison if served consecutively. However, federal sentencing guidelines often result in penalties below the maximum limit.
Chhipa is scheduled to be sentenced on May 5, 2025, when a federal judge will determine his prison term. While the maximum penalty could reach 100 years, actual sentencing will depend on statutory factors and federal guidelines.
Crypto Misuse and Anti-Money Laundering Efforts
The misuse of crypto in terrorism financing has become a growing concern globally. Due to the speed, anonymity, and cross-border capabilities of digital assets, they are increasingly used by terrorist organizations to bypass traditional financial systems.
Chhipa’s case is not unique. In May 2024, Victoria Jacobs was sentenced to 18 years in prison by a New York State jury after being convicted of funding Syrian terrorism using Bitcoin. She was found guilty of charges like money laundering, soliciting or providing support for an act of terrorism, criminal possession of a weapon, etc.
In October 2024, a teenager was accused of using crypto to support Al Qaeda and other extremist groups. Although the defendant pleaded not guilty, it was revealed that he allegedly raised approximately $1,300 in cryptocurrency.
Meanwhile, Maximiliano Pilipis, operator of the crypto exchange AurumXchange, was charged with money laundering related to the infamous Silk Road darknet marketplace. Between 2009 and 2013, Pilipis’ exchange violated anti-money laundering regulations by processing illegal transactions without proper licensing.
The Financial Action Task Force (FATF) and law enforcement agencies continue to push for stronger global oversight to curb the misuse of cryptocurrencies.
Unlike other countries, the UK has tightened its grip on cryptocurrency regulation to combat market risks.
On December 16, the Financial Conduct Authority (FCA) proposed stricter rules, including banning public crypto offerings by unregulated companies.
