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This week, Mohammed Azharuddin Chhipa of Virginia, was convicted for providing material support to ISIS. This conviction reflects years of meticulous investigation and collaboration among US and international law enforcement agencies. TRM Labs is proud to have supported law enforcement in this investigation. 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. 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 $188,000, with at least $18,000 traced directly to ISIS fundraising campaigns. The Federal Bureau of Investigation (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. While the case demonstrates that terrorist financiers are experimenting with cryptocurrencies, it also shows how the FBI and other agencies are leveraging blockchain intelligence to investigate and disrupt.

As 2024 comes to a close, we’re reflecting on all we’ve accomplished this year as a community. Thank you to all of our customers, partners, and employees for all that you do helping to build a safer financial system. Read our 2024 Wrapped post 👉 https://lnkd.in/eeSqgezb

🇬🇧 We are thrilled to sponsor FFECON25 — The Art of Risk! Hosted by FINTRAIL and the FinTech FinCrime Exchange, this is a must-attend event for all financial crime fighters. 🗓 February 27, 2025 📍 22 Bishopsgate, London Join us and 400+ FinCrime professionals as we dive into emerging threats, hear from industry-leading speakers, and explore the latest innovations in financial crime prevention. 🎁 Looking for a last minute gift? Get £50 off your ticket when you register using our promo code: FFECON25_TRMLABS. We can’t wait to see you there! Find out more and here 👉🏼 https://hubs.la/Q030hQft0 #FFECON25 #FinCrime #FinTech #TheArtOfRisk

👋 Welcome back to another Weekly Roundup. It’s been an exciting week in the cryptoverse! Here’s what our policy experts Ari Redbord, Angela Ang, and Isabella Chase have in store for you: 🏛️ French Hill selected as new chair of US House Financial Services Committee 🪙 Tracking “Hawk Tuah Coin” 🌎 TRM releases Global Crypto Policy Review & Outlook 2024/25 report 🏦 US financial regulators warn of stability risks associated with stablecoins 🇧🇷 Brazil looks to ban stablecoin transfers to unhosted wallets 🇬🇧 UK FCA launches discussion paper on cryptoasset disclosures and market abuse Loving the Weekly Roundup? Be sure to leave us a like 👍, share 🔄, or comment 💬.

Today, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) targeted the financial networks sustaining the Houthi movement in Yemen, designating 12 individuals and entities across multiple jurisdictions. The action focuses on a web of arms traffickers, financial operatives, shipping facilitators, and smuggling networks that enable the Houthis to fund and sustain their destabilizing regional activities. Five cryptocurrency wallets linked to the network have been identified and added to the Specially Designated Nationals and Blocked Persons List (SDN List), highlighting the evolving tactics employed by the Houthis and their affiliates to exploit digital currencies. According to TRM Labs, collectively, these designated addresses received over USD 330 million in total inflows. Additionally, TRM noted these addresses used a wide variety of services, both centralized and decentralized, in order to facilitate some of their transactional activity. These financial and logistical networks sanctioned today directly support the Houthis’ destabilizing activities in Yemen and beyond. The Houthis have continued to wage a brutal campaign involving missile strikes, drone attacks, and regional destabilization efforts, often targeting civilian infrastructure and exacerbating the humanitarian crisis in Yemen. Just this week, the United States conducted an airstrike on a Houthi command-and-control facility in Yemen, following heightened Houthi attacks on international shipping vessels in the Red Sea. By targeting key individuals, financial facilitators, and logistical operatives, OFAC aims to sever the financial lifelines that sustain the Houthis’ military and political ambitions. The designation of cryptocurrency wallets, money service businesses, and international shipping firms underscores the global reach of these networks and the importance of international collaboration in combating them. The involvement of Malaysia-based entities in facilitating the illicit oil trade further demonstrates the need for vigilance in regulating global shipping and financial systems. 📄 Read TRM's full blogpost on today's designation here: https://lnkd.in/eFiBQNrw

Have you seen “Biggest Heist Ever” on Netflix yet? 👀 Dig into all the details of the 2016 Bitfinex hack, the investigation and the eccentric characters behind the largest heist in history, featuring TRM’s Ari Redbord and Chris Janczewski. Check it out 👉 https://lnkd.in/eESH8Ypb #BiggestHeistEver #BiggestHeistEverNetflix #BitfinexHack

🇬🇧 Last week, TRM hosted a briefing for UK Law enforcement at the US Embassy in London. Attendees discussed their experience mitigating the use of cryptocurrencies for illicit activity, how to use #blockchainintelligence in court, and received threat briefings on key topics. TRM’s Phil Ariss moderated a LEO Labs Live panel with Ian Osborne, Detective Sergeant National Cryptocurrency Investigator / Tactical Advisor (National Police Chiefs' Council), Brandon Jukes, Senior Associate (Financial Conduct Authority), Ben Findley, Deputy Threat Lead, Tech-Enabled Money Laundering (HM Revenue & Customs), and Kelly Thronburn, Detective Sergeant – Specialist Crime Division, Cybercrime Investigations (Police Scotland). The discussion focused on the key challenges of deconfliction since traditional methods don’t do well with crypto assets, and the importance of using tools like TRM to assist with these processes alongside inter-agency collaboration. As we build a safer financial system, it’s critical to understand the scope of problem and work together to solve it. 💪

Rene Michau, Global Head of Digital Assets, Standard Chartered and Esme H., Chief Compliance Officer SCVentures are Ari Redbord’s guests on #TRMTalks this week. As the traditional financial system becomes more decentralized, Standard Chartered is working to close the gap between TradFi and DeFi through partnerships, innovation in blockchain technology, compliance, and investment in cryptocurrency infrastructure. Hear two of the leaders in this space share how Standard Chartered is working to shape the future of finance. 🎧 Listen to the full episode, out now: https://lnkd.in/e7bdu6H7