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Highlights
- Virginia man convicted of funding ISIS through cryptocurrency.
- Chhipa sent $185,000 in crypto to ISIS from 2019 to 2022.
- Maximum prison sentence of up to 100 years for providing material support to ISIS.
A Virginia man, Chhipa, was convicted for funneling $185,000 in cryptocurrency to ISIS members between 2019 and 2022. The funds were used to support terrorist activities, including smuggling fighters and aiding prison escapes. The case highlights the growing concerns over the misuse of cryptocurrency in financing illegal operations, with potential sentences of up to 100 years in prison.
Virginia Man Convicted for Funding ISIS via Cryptocurrency
A Virginia man, Chhipa, has been convicted of funneling funds to ISIS through cryptocurrencies, a crime that underscores the growing concerns about the misuse of digital currencies for illegal activities. The United States Department of Justice (DOJ) reported that between October 2019 and October 2022, Chhipa sent $185,000 worth of cryptocurrencies to ISIS members in Syria.
Methods of Fundraising and Smuggling
Chhipa utilized a combination of social media accounts, bank transfers, and in-person cash collections to raise funds. These funds were then converted into cryptocurrency, a method that made it easier to send money abroad. The digital currencies were transferred to Turkey, where they were smuggled into Syria to support ISIS activities, including financing the escape of female ISIS members from prison camps and providing aid to fighters.
Co-conspirator in Syria
Chhipa’s operation was supported by a British-born ISIS member based in Syria, who acted as the primary co-conspirator. This individual helped with the fundraising for escapes and terrorist attacks. The DOJ’s investigation revealed that the collaboration between Chhipa and the ISIS member extended beyond financial support and included logistical assistance to facilitate the smuggling of funds to ISIS operatives.
Conviction and Charges
Chhipa was convicted on five counts, which included one count of conspiracy to provide material support to a foreign terrorist organization and four counts of providing material support to ISIS. The conviction highlights the increasing role that cryptocurrencies play in facilitating global terrorism. Chhipa faces up to 100 years in prison if sentenced to the maximum penalty for all charges. However, federal sentences are typically shorter than the maximum statutory penalties, and Chhipa’s actual sentence will be determined during a hearing set for May 5, 2025.
Recent DOJ Action on Crypto Exchanges
The case follows other high-profile DOJ actions concerning cryptocurrency exchanges. In a separate instance, Maximiliano Pilipis, operator of the crypto exchange AurumXchange, was charged with money laundering related to the Silk Road darknet marketplace. AurumXchange was accused of processing illicit transactions and violating critical regulatory guidelines, including Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
The conviction of Chhipa, along with these recent cases, illustrates the growing concern over the misuse of cryptocurrencies in illegal activities and the need for stricter regulatory oversight in the crypto industry.
