A Virginia man has been sentenced to more than 30 years in federal prison for transferring cryptocurrency to fund operations for the Islamic State (ISIS), marking one of the most significant crypto-terrorism cases prosecuted in the United States to date.
DOJ: Crypto Used to Fund ISIS Escape and Combat Operations
Mohammed Azharuddin Chhipa, 35, from Springfield, Virginia, was sentenced on May 7 to 30 years and four months in prison after being convicted of multiple terrorism-related offenses. According to the U.S. Department of Justice, Chhipa funneled more than $185,000 in cryptocurrency to ISIS operatives over a three-year period, aiding both combat efforts in Syria and the escape of detained ISIS members.
A federal jury convicted Chhipa in December 2024 on five counts, including conspiracy to provide material support and attempts to provide material support to a designated foreign terrorist organization.
Financial Facilitator and Crypto Laundering Scheme
Prosecutors identified Chhipa as a key financial facilitator who used social media to solicit funds, then converted them to cryptocurrency to obscure their origin. The funds were routed through intermediaries in Turkey, before ultimately being smuggled into Syria to support ISIS fighters and female detainees in camps.
“Chhipa knowingly and persistently collected and provided a considerable amount of money to fund the violence of an organization bent on forcing their extremist ideology on others,” said U.S. Attorney Erik S. Siebert.
Authorities say Chhipa’s primary contact was a British-born ISIS member known for orchestrating terror attacks and prison breakouts. The Justice Department emphasized that Chhipa’s efforts bolstered ISIS’s operational capacity at a critical time.
Attempted Escape and International Pursuit
During the investigation, Chhipa attempted to flee the U.S., traveling through a network of countries including Mexico, Guatemala, Panama, and Germany before being intercepted in Egypt and extradited back to the U.S. under an Interpol Blue Notice.
The DOJ also noted that Chhipa employed various tactics to conceal his identity, such as using aliases, misspelled email accounts, and pseudonyms to purchase travel tickets, further complicating law enforcement efforts.
Broader Crackdown on Crypto-Financed Terrorism
Chhipa’s case is part of a broader initiative by U.S. authorities to crack down on the use of digital assets in terrorism financing. In April, the DOJ seized over $200,000 in crypto tied to Hamas, and the Treasury’s Office of Foreign Assets Control (OFAC) blacklisted eight crypto addresses associated with Houthi financing networks.
These cases reflect a coordinated push to dismantle digital financial pipelines used by terror groups including ISIS, Hamas, Hezbollah, and the Houthis.
