Between 2019 and 2022, Chhipa was found to have sent $185,000 worth of cryptocurrency to ISIS members in Syria. According to the Department of Justice (DOJ), Chhipa sent these funds for purposes such as financing the escape of female ISIS members from prisons and supporting ISIS fighters.

Court records and evidence revealed that Chhipa used social media accounts, bank transfers and in-person cash collection to raise funds. The collected money was converted into cryptocurrency and sent to Turkey, where it was smuggled to ISIS members in Syria.

Another accomplice of Chhipa was identified as a British-born ISIS member living in Syria. This person was also raising funds to finance prison escapes and terrorist attacks.

Chhipa was convicted of five crimes. These crimes included one count of conspiracy to provide material support to a designated foreign terrorist organization and four counts of providing or attempting to provide material support to a designated foreign terrorist organization.

Sentences for federal crimes are typically less than the maximum, but Chhipa could face up to 100 years in prison if the maximum sentence is imposed consecutively for each of his crimes. Chhipa’s sentence will be determined at the hearing on May 5, 2025.

The United States Department of Justice (DOJ) also filed a lawsuit against Maximiliano Pilipis, the operator of the crypto exchange AurumXchange, for laundering funds linked to the darknet market called Silk Road.

It is claimed that this exchange made many transactions from accounts located on Silk Road and operated without a license between 2009 and 2013. It was also stated that AurumXchange violated Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regulations.

Chhipa’s case highlights the growing importance of cryptocurrencies for regulatory and financial security. Cryptocurrency use has increased rapidly around the world in recent years, which has also led to an increase in illegal activities.

Especially in critical issues such as financing terrorism, the use of cryptocurrencies requires states to carry out more inspections and regulations.

Although the anonymity and borderless nature of cryptocurrencies make it easier to carry out such activities, it is increasingly expressed that regulations around the world need to be tightened.

The methods used by Chhipa and his accomplices demonstrate how cryptocurrencies can be used to fund terrorist organizations.

Such incidents reveal the need for governments, regulators and security agencies to monitor digital assets more closely and develop more effective strategies to prevent criminal activity. It is important to strengthen international cooperation to prevent the use of cryptocurrencies in illegal activities.