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Upstate New York Woman Arrested for Sending Cryptocurrency to Palestine Islamic Jihad

The case signals stepped-up federal action to cut off encrypted communications and crypto funding to U.S.-designated terrorist groups.

Overview

  • Federal prosecutors say Catherine Beth Washburn was arrested and charged with attempting to provide material support after authorities unsealed a criminal complaint prosecutors announced Tuesday.
  • The complaint alleges she made roughly 80 cryptocurrency transfers totaling about 30,116 USDC, which prosecutors say was sent to an account used by an individual who identified as a Palestine Islamic Jihad fighter.
  • FBI Joint Terrorism Task Force search warrants executed in February and March recovered electronic messages in which Washburn praised violence, said “I wish every day were October 7th,” and discussed weapons and attacks.
  • Washburn is identified in the complaint as a leader of the Direct Action Movement for Palestinian Liberation and faces a charge that carries up to 20 years in prison and a $250,000 fine while she remains detained pending further proceedings.
  • Officials say the case underscores how encrypted messaging and cryptocurrency can be used to move funds to designated foreign terrorist organizations and that the FBI and DOJ plan to pursue similar financing channels aggressively.