Share this article
DOJ Alleges Bitcoin Involved in Attempted ISIS Funding
Prosecutors have accused a New York woman of using credit cards to purchase bitcoin and then launder those funds to send money to ISIS.
By Stan Higgins
Updated Sep 13, 2021, 7:16 a.m. Published Dec 14, 2017, 10:20 p.m.
A New York woman has been indicted for attempting to provide financial support to the ISIS terrorist grou in a scheme that prosecutors say involved the purchase of cryptocurrencies using fraudulently obtained credit cards.
Zoobia Shahnaz of Long Island, the U.S. Attorney's Office for the Eastern District of New York said today, has been charged with bank fraud, conspiracy to commit money laundering and three counts of money laundering.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Though the indictment unsealed today makes no mention of the involvement of bitcoin directly, the office said in a press release that the funds she sent overseas – totaling more than $150,000 – were sourced in part from credit cards for which she fraudulently applied. Those cards were then used to purchase bitcoin and other unnamed cryptocurrencies, which were subsequently laundered back into the banks prior to being wired out.
Some of the funds were also generated through a fraudulently obtained loan, prosecutors said.
The office went on to explain:
"[Shahnaz]...fraudulently applied for over a dozen credit cards, which she used to purchase approximately $62,000 in Bitcoin and other cryptocurrencies online. She then engaged in a pattern of financial activity, culminating in several wire transactions, totaling over $150,000, to individuals and apparent shell entities in Pakistan, China and Turkey. These transactions were designed to avoid transaction reporting requirements, conceal the identity, source and destination of the illicitly obtained monies, and, ultimately, benefit ISIS."
Court documents name four banks – American Express Bank, Chase Bank, Discover Bank and TD Bank – that Shahnaz and a group of unnamed conspirators sought to use to transmit funds overseas. After the transactions were sent, according to the statement, Shahnaz was questioned by law enforcement while attempting to travel to Syria from New York.
At this time, it's unclear based on the available information if any bitcoin was sent overseas by Shahnaz.
If convicted on all charges, Shahnaz could be sentenced to as many as 90 years in prison, according to the attorney's office.
Justice statue image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Bitcoin’s Deep Correction Sets Stage for December Rebound, Says K33 Research
K33 Research says market fear is outweighing fundamentals as bitcoin nears key levels. December could offer an entry point for bold investors.
What to know:
- K33 Research says bitcoin’s steep correction shows signs of bottoming, with December potentially marking a turning point.
- The firm has argued that the market is overreacting to long-term risks while ignoring near-term signals of strength, like low leverage and solid support levels.
- With likely policy shifts ahead and cautious positioning in futures, K33 sees more upside potential than risk of another major collapse.
Top Stories
