Springfield Man Sentenced for Using Crypto to Aid ISIS

On December 13, Springfield resident Muhammad Azharuddin Chhipa was convicted by a federal jury of multiple crimes related to the Islamic State of Iraq and Damascus, a foreign terrorist organization.

As reported in the U.S. attorney’s press release, evidence at trial shows Chhipa engaged in a multi-year scheme from at least October 2019 through 2022 to funnel cash to female ISIS supporters in Syria.

These funds allegedly helped finance a range of terrorist activities, including the escape of those affiliated with ISIS from prison camps, as well as financing ISIS fighters themselves. Prosecutors even cited the defendant’s use of cryptocurrency as central to his operational method as he sought to conceal the place of origin and recipient address of transferred funds.

Chhipa’s main contact was a British-born ISIS operative in Syria who financed prison breaks and terrorist attacks and provided direct support to ISIS fighters. In total, Chhipa wired cryptocurrencies equivalent to more than $185,000 throughout the course of the conspiracy, converting the funds he raised online and in person. It would then convert these contributions into crypto and send them to intermediaries in Turkey after receiving fiat contributions via wire transfers and cash.

The conviction charges include conspiracy to provide financial support or resources to a designated foreign terrorist organization, as well as providing or attempting to provide such support. Chhipa faces up to 20 years in federal prison on both counts, with a sentencing date set for May 5, 2025. Since penalties may be below the legal maximum, in this case the penalty will be determined by the federal district. An appeal will be made to the court after considering the applicable guidelines and factors.

The lawsuit, filed by the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice’s National Security Division, highlights a long-standing problem in the crypto industry. Illegal cryptocurrency transaction volumes rose from $14 billion in 2021 to an all-time high of $20.1 billion in 2022, according to Chainalytics.