A U.S. court has handed down a 30-year prison sentence to Mohammed Azharuddin Chhipa, who was found guilty of financing terrorism through cryptocurrency.
Federal prosecutors say Chhipa raised funds both online and in person before converting the money into digital assets and sending it overseas.
Between 2019 and 2022, he funneled more than $185,000 into crypto wallets linked to operatives in Turkey, with the funds ultimately used by ISIS affiliates in Syria. The money reportedly supported operations including prison breaks and logistical support for militant activities.
The jury convicted Chhipa on multiple counts, including conspiring to support a foreign terrorist group. Authorities described his actions as critical to sustaining terror networks, equating financiers with those who carry out attacks.
The case highlights renewed concerns over the misuse of digital assets in international crime. While lawmakers continue to press for tighter controls—especially those critical of crypto’s role in illicit finance—industry data from Chainalysis suggests that illegal activity accounts for under 1% of total crypto transactions.
A major chapter in crypto’s legal reckoning closed this week as Alex Mashinsky, once a prominent name in digital lending, received a 12-year prison sentence.
Former Celsius CEO Alex Mashinsky is asking for a significantly reduced prison sentence ahead of his May 8 sentencing, with his legal team pushing back hard against the U.S. Department of Justice’s call for a 20-year term.
The legal battle against the creators of Samourai Wallet has taken a sharp turn, as defense attorneys accuse federal prosecutors of suppressing a key legal interpretation from the Treasury Department that could dismantle the core of the government’s case.
A decades-long Bitcoin holder has reportedly lost over $300 million in a devastating crypto theft — one of the largest in recent memory.