A New York woman has been indicted for conspiring to commit money laundering via bitcoin and other cryptocurrencies and transferring the funds to ISIS terrorist outfit.
In its press release, the U.S. Department of Justice said that Zoobia Shahnaz defrauded a number of financial institutions and obtained $85,000 in illicit proceeds, which she converted to bitcoin and other cryptocurrencies. She then laundered and transferred the funds out of the country to support the Islamic State of Iraq and al-Sham (ISIS).
According to the court filings, Shahnaz engaged in several wire transactions, totaling over $150,000, to individuals and apparent shell entities in Pakistan, China and Turkey. The DOJ said that transactions were conducted in such a way as to avoid transaction reporting requirements, conceal the identity, source and destination of the illicitly obtained funds, and, ultimately, provide financial support to ISIS.
After conducting these financial transactions, Shahnaz attempted to leave the U.S. and travel to Syria. She was questioned by law enforcement at John F. Kennedy International Airport when she attempted to board a flight to Islamabad, Pakistan, with a multi-day layover in Istanbul, Turkey – a common point of entry for individuals travelling from Western countries to join ISIS in Syria.
“As alleged, the defendant Zoobia Shahnaz engaged in a bank fraud scheme, purchased Bitcoin and other cryptocurrencies and laundered money overseas, intending to put thousands of dollars into the coffers of terrorists,” stated Acting United States Attorney Rohde.
If proven guilty, Shahnaz faces a maximum of 30 years for the bank fraud charge and 20 years on each count money laundering count.
