Mohammed Chhipa sentenced to 20 years for $185K ISIS crypto scheme

Mohammed Azharuddin Chhipa, a 35-year-old from Springfield, Virginia, was convicted on December 13, 2024, for supporting ISIS through cryptocurrency donations.

The charges date back to October 2019 to October 2022, during which Chhipa raised and transferred over $185,000 in cryptocurrency to ISIS.

According to the U.S. Department of Justice (DOJ), Chhipa provided financial support to female ISIS members, helping them escape prison camps and assisting ISIS fighters.

Chhipa utilised various online platforms to collect funds and converted the money into cryptocurrency, which he smuggled into Syria via Turkey.

His accomplice, a British-born ISIS member in Syria, played a key role in the fund-raising operation.

Chhipa was convicted of one charge of conspiracy to provide material support to a foreign terrorist organisation and four counts of providing such support.

He now faces up to 20 years in prison for each count.

A sentencing hearing will take place on May 5, 2025.

This case highlights the growing role of cryptocurrencies in financing terrorism.

Reports from TRM Labs have shown that ISIS affiliates in countries like Afghanistan, Pakistan, and Indonesia have raised significant funds using cryptocurrencies like Tether (CRYPTO:USDT) on the Tron network.

While terrorism financing via cryptocurrency is a concern, experts like Chainalysis note that traditional methods like financial institutions remain the primary source of illicit funding.

Cryptocurrency transactions, however, are traceable, and blockchain transparency often makes it difficult for terrorists to conceal transactions.