Skip to main content
Sunday, November 15, 2026Nov 15
Subscribe
All Sections
Search
More

US woman pleads guilty to bitcoin ploy aiding Islamic State

Coins are displayed next to a Bitcoin ATM in Hong Kong. The IRS says that cryptocurrency transactions are taxable by law. That means people who made money (or lost it) on Bitcoin trades, "mined" Ethereum or even bought a cup of coffee with digital currency face potential tax implications. Failure to report it could mean potential audits, fines and penalties. (AP Photo/Kin Cheung, File)
Coins are displayed next to a Bitcoin ATM in Hong Kong. The IRS says that cryptocurrency transactions are taxable by law. That means people who made money (or lost it) on Bitcoin trades, "mined" Ethereum or even bought a cup of coffee with digital currency face potential tax implications. Failure to report it could mean potential audits, fines and penalties. (AP Photo/Kin Cheung, File)

By Associated Press 1 min read

CENTRAL ISLIP, N.Y. (AP) – A Pakistani-born New York woman has acknowledged her role in defrauding numerous financial institutions in a bitcoin scheme to help the Islamic State group.

Prosecutors say Zoobia Shahnaz, a naturalized U.S. citizen living on Long Island, pleaded guilty in federal court in Central Islip Monday to providing material support to a foreign terrorist organization.

The 27-year-old Shahnaz was charged with laundering bitcoin and wiring money to the Islamic State group. After quitting her job, she was stopped at Kennedy Airport last year attempting to fly to Pakistan.

Shahnaz’s lawyer has said she was trying to help Syrian refugees.

She faces up to 20 years in prison.