Virginia Man Convicted for Crypto Financing Scheme to ISIS

On December 16, 2024, Mohammed Azharuddin Chhipa, a 35-year-old from Springfield, Virginia, was convicted for providing material support to the Islamic State of Iraq and al-Sham (ISIS). This conviction reflects years of meticulous investigation and collaboration among US and international law enforcement agencies. TRM is proud to have supported law enforcement in this investigation.

The plot to fund ISIS

Between October 2019 and October 2022, Chhipa orchestrated an elaborate scheme to funnel financial support to ISIS. Posing as a humanitarian through an active social media presence, he solicited donations purportedly for assisting women and families in Syrian camps such as al-Hol. However, private communications and investigative findings revealed his true intent: directly aiding ISIS fighters, financing prison breaks for detained female ISIS members, and supporting the group’s operational activities. Freeing ISIS members and families held in al-Hol and other camps has long been a declared goal of ISIS. 

In 2022, TRM wrote an in-depth report on the fundraising efforts associated with al-Hol and other camps conducting an analysis of content published by about a dozen fundraising campaigns and on-chain crypto movements.

Chhipa’s operations were multifaceted. He collected funds through electronic transfers, in-person cash pickups, and international channels. These funds were then converted into cryptocurrency, primarily Bitcoin, which was transferred to accounts in Turkey. From there, the money was smuggled into Syria to support ISIS members. Over the course of his activities, Chhipa raised over USD 188,000, with at least USD18,000 traced directly to ISIS fundraising campaigns.

FBI’s long-term investigation

The Federal Bureau of Investigation’s (FBI) investigation into Chhipa began over a decade ago, but was reinvigorated around 2019 when an agent identified Chhipa posting pro-ISIS material on social media. The search uncovered a trove of extremist materials, including videos glorifying ISIS violence, bomb-making instructions, and propaganda advocating for jihad. Chhipa’s digital footprint also revealed thousands of encrypted communications and transactions aimed at evading detection.

Fearing imminent arrest, Chhipa attempted to flee the United States. In a carefully orchestrated escape, he abandoned his vehicle, withdrew cash, and purchased a series of bus tickets using aliases and newly created email accounts. His journey took him through Mexico, Guatemala, and Panama, with Egypt as his intended destination. However, a swift Interpol Blue Notice issued by US authorities led to his detention and return to the United States before he could reach Egypt.

During the investigation, the FBI used blockchain intelligence to connect Chhipa’s transactions to specific fundraising campaigns identified as supporting ISIS fighters and prison escapes. Undercover agents and confidential informants corroborated these findings through recorded communications, in which Chhipa openly expressed his ideological commitment to ISIS and his belief in the importance of financial contributions to the jihadist cause.

Building the case

Chhipa’s indictment included one count of conspiracy and four counts of providing or attempting to provide material support to ISIS, all under 18 U.S.C. § 2339B. Each count carries a maximum penalty of 20 years in prison. The government’s case rested on a combination of financial records, blockchain data, undercover communications, and digital evidence. The weight of this evidence not only substantiated the charges but also demonstrated the critical role of cryptocurrency investigations in counterterrorism.

The DOJ’s detention motion detailed Chhipa’s ideological alignment with ISIS, his history of fleeing prosecution, and his advanced technical skills, which enabled him to evade detection for years. The motion emphasized the severity of his crimes, including the funding of violent activities and the escape of high-risk ISIS operatives. It also highlighted the potential danger he posed to the community, citing his possession of bomb-making materials and his expressed willingness to die a martyr for the cause.

The trial and verdict

The trial took place in the Eastern District of Virginia, a hub for national security cases. Prosecutors presented a comprehensive narrative of Chhipa’s activities, supported by financial evidence, communications, and testimony from investigators. 

On December 13, 2024, the jury returned a guilty verdict on all counts, underscoring the strength of the government’s case. Chhipa’s sentencing is scheduled for May 5, 2025.

Broader implications

Chhipa’s conviction sets a significant precedent in addressing the financial underpinnings of terrorism. Charges under 18 U.S.C. § 2339B are challenging to prosecute due to the requirement of proving both intent and materiality. The case demonstrates that supporters of terrorist organizations are experimenting with new ways to raise and move funds. For example, an ISIS supporter arrested in Oklahoma on October 8, 2024, had sent $540 worth of cryptocurrency to a similar Syria-based fundraising campaign. However, this case also demonstrates how blockchain intelligence, combined with undercover operations and international collaboration, can overcome these hurdles.

The case also underscores the adaptability of terrorist organizations in leveraging digital assets for funding. As the DOJ noted, “money is the lifeblood of terrorist organizations,” and the ability to trace financial flows is critical to disrupting their operations.