Man Sentenced to Over 30 Years for Financing ISIS with Crypto

The Department of Justice revealed he funneled over $185,000 to ISIS from 2019 to 2022, using crypto channels to mask the illicit flow of funds. Meanwhile, Michelle Bond, wife of former FTX executive Ryan Salame, is seeking to dismiss her campaign finance charges, and claimed that prosecutors misled her husband into pleading guilty under the false promise she would not be charged. In another crypto case, former Celsius CEO Alex Mashinsky was granted court approval to travel for his daughter’s wedding, even as he awaits sentencing for fraud tied to the CEL token. ISIS Crypto Financier Jailed A Virginia man was sentenced to more than 30 years in prison after being convicted of financing the Islamic State (ISIS) with cryptocurrency. On May 7, US District Judge David Novak handed down a sentence of 30 years and four months to 35-year-old Mohammed Azharuddin Chhipa. Announcement from the Department of Justice The sentence was handed down after his December conviction on one count of conspiracy to provide material support to a terrorist organization and four additional counts of providing and attempting to provide such support. According to the Department of Justice, Chhipa funneled more than $185,000 to ISIS between October of 2019 and October of 2022. Prosecutors shared details about how Chhipa raised these funds through online platforms and in-person meetings, even traveling long distances to collect donations. He then converted the funds into cryptocurrency, and sent it to contacts in Turkey who smuggled the money to ISIS members across the border in Syria. Many of the recipients were women affiliated with ISIS who were detained in prison camps, and the funds were used to facilitate their escape and support ongoing militant activities. Attorney General Pam Bondi placed a lot of emphasis on the gravity of the case, and stated that Chhipa “directly financed ISIS in its efforts to commit vile terrorist atrocities against innocent citizens in America and abroad.” She added that the lengthy prison sentence serves as a strong deterrent to anyone considering similar actions. The court also learned that Chhipa tried to evade justice during the FBI’s investigation . After federal agents searched his home in August 2019, Chhipa fled Virginia. He did this initially by paying a stranger at a Taco Bell to drive him to a relative’s house. He then used various aliases and newly created email accounts to buy a sequence of bus and plane tickets, taking him through Mexico, Guatemala, Panama, Germany, and ultimately to Egypt. His escape was thwarted when an Interpol Blue Notice led to his return to the United States. FTX Executive’s Wife Says DOJ Misled to Secure Guilty Plea Other crypto criminals are also facing the wrath of the law. However, Michelle Bond, the wife of former FTX Digital Markets co-CEO Ryan Salame, is seeking to have her federal campaign finance charges dismissed after alleging that US prosecutors misled her husband in securing his plea deal. In a May 7 court filing in the Southern District of New York, Bond’s legal team argued that the government induced Salame’s guilty plea by promising not to pursue charges against her, but failed to document that agreement. According to the filing, Salame and Bond’s attorneys were told that the assurance not to charge Bond could not be included in the formal plea paperwork, yet it was still presented as a condition to encourage Salame’s cooperation. Bond’s lawyers believe this constitutes “stealth and deception,” which raises some serious concerns over the plea’s integrity. Michelle Bond and Ryan Salame Bond is facing multiple charges, including conspiracy to cause unlawful campaign contributions and filing false reports to the Federal Election Commission related to her failed 2022 run for Congress. The indictment was handed down in August of 2024, months after Salame already entered his guilty plea to two felony charges. Salame was sentenced to over seven years in prison, but previously tried to withdraw his plea on similar grounds. He also claimed that it included a non-prosecution agreement for Bond, but he later abandoned the effort and reported to prison in October 2024. The May 7 filing also asked the court to suppress any statements Bond made after the alleged inducement, suggesting they were obtained under false pretenses. Bond, like Salame, implied that her Republican political affiliation played a role in her being targeted by prosecutors. Her case is the latest chapter in the long-unfolding legal aftermath of the FTX collapse. Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in 2023 and is now appealing the decision. Caroline Ellison received a two-year sentence under a plea deal, and other executives, including Gary Wang and Nishad Singh, were sentenced to time served. Mashinsky Granted Court OK to Travel Alex Mashinsky, the former CEO of Celsius, is likely to be granted permission to travel to Tennessee for his daughter’s wedding, regardless of the outcome of his sentencing hearing. According to a filing in the US District Court for the Southern District of New York, Judge John Koeltl approved a request allowing Mashinsky to travel from New York to Memphis between May 26 and May 29 to attend the event. Although the approval appeared on the court docket on May 8, it was later removed from public view without explanation. Mashinsky’s sentencing hearing will determine whether he serves prison time after his December 2024 guilty plea. He admitted to commodities fraud and participating in a scheme to manipulate the price of Celsius’ native token, CEL. This was a big shift from his earlier fight against the charges, as he had initially prepared to go to trial before his legal team lost a key motion to dismiss the case. Admission from Mashinsky in court Since his arrest in July of 2023, Mashinsky has been free on a $40 million bond, but his movements were very restricted. Any travel beyond certain designated areas, like the nearly 900-mile trip to Memphis, must receive prior court approval. The uncertainty surrounding whether he will be required to surrender to authorities after sentencing still lingers. Prosecutors are pushing for a very large penalty, and even asked the judge to impose a 20-year prison sentence . Meanwhile, Mashinsky’s defense team requested a much more lenient sentence of one year and one day. His legal team submitted letters of support from family members, including a heartfelt plea from his oldest daughter arguing that Mashinsky never intended to harm anyone and does not deserve a harsh punishment. The case is being closely watched as a possible indicator of how crypto-related criminal prosecutions might evolve under the Trump administration, which appointed the current interim US Attorney overseeing the case. The court presiding over Mashinsky’s case also handled the prosecution of former FTX CEO Sam Bankman-Fried.

Source: Coinpaper