Virginia Resident Used Crypto to Support Terror Group and Facilitate Prison Breaks
A 35-year-old Virginia man, Mohammed Azharuddin Chhipa, has been sentenced to 30 years and four months in federal prison after being convicted of sending over $185,000 in cryptocurrency to members of the Islamic State of Iraq and Syria (ISIS), the U.S. Department of Justice (DOJ) announced on May 8.
The sentence was handed down by Federal Judge David Novak on May 7, following Chhipa’s conviction on five charges related to supporting terrorism, including conspiracy to provide material support and attempting to provide material support to a designated foreign terrorist organization.
“This defendant directly financed ISIS in its efforts to commit vile terrorist atrocities against innocent citizens in America and abroad,” said Attorney General Pam Bondi.
“This severe sentence illustrates that if you fund terrorism, we will prosecute you and put you behind bars for decades.”
Crypto Transfers Helped ISIS Fighters and Facilitated Escapes
According to prosecutors, Chhipa operated an extensive fundraising campaign between October 2019 and October 2022, raising money online and even traveling hundreds of miles to collect donations in person.
Once he had the funds, he:
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Converted cash into cryptocurrency
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Transferred the crypto to contacts in Turkey
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Facilitated smuggling of funds across the border into Syria
These funds were used to assist female ISIS members in escaping prison camps and to support ISIS fighters in ongoing operations.
Attempted Escape and International Flight Plan Foiled
During the FBI’s investigation, Chhipa allegedly tried to evade arrest and flee the U.S., taking multiple steps to cover his tracks:
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On August 2, 2019, the FBI searched his home
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That same day, he withdrew $1,800 in cash from an ATM and paid a stranger at a Taco Bell for a ride to a relative’s house
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Over the next three days, Chhipa purchased multiple bus tickets under misspelled or alternate names
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He traveled from Virginia to Mexico, then to Guatemala, where he booked flights to Panama, Germany, and Egypt
However, international law enforcement quickly caught up. After an Interpol Blue Notice was issued, Chhipa was detained and returned to the U.S. to face prosecution.
Final Thoughts: Crypto’s Dark Side Highlighted in Terror Funding Case
Chhipa’s case underscores how cryptocurrency continues to be exploited by bad actors, particularly those seeking to evade traditional financial surveillance. While crypto offers borderless efficiency, it also presents risks when used to fund terrorism and criminal activity.
The sentencing sends a clear message: digital tools will not shield terrorism financiers from justice, and U.S. law enforcement will pursue such actors across borders and across blockchains.
