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CRYPTO FOR TERROR

NY JIHAD FINANCIER BUSTED BY FBI

A New York woman faces up to 20 years in prison after being charged with funding Palestinian Islamic Jihad using cryptocurrency

Katherine Washburn a jihadist from New York

Katherine Beth Washburn (37), of Irondequoit NY, was arrested after an FBI counterterrorism investigation uncovered dozens of financial transfers to a terrorist operative.

According to the U.S. Department of Justice, Washburn faces a maximum sentence of 20 years in prison and a $250,000 fine for attempting to provide material support and financial resources to Palestinian Islamic Jihad.

Washburn serves as a leader in the extremist group Direct Action Movement for the Liberation of Palestine, an organization formed after the "Oct.7th attacks" that rejects peaceful protest and advocates for property destruction against Israeli-affiliated targets.

Money
Money (Photo: Shutterstock / Sippapas somboonkarn)

Federal prosecutors revealed that between February and March 2026, investigators uncovered encrypted communications between Washburn and a terrorist fighter in Gaza who claimed to participate in attacks against Israel.

Financial records show Washburn made approximately 80 cryptocurrency transfers totaling $30,116 to an account utilized by the operative. In her messages, Washburn repeatedly praised violence against Israeli civilians, expressed extreme hatred toward Jewish people, and explicitly stated her desire to see Israel destroyed.

Extremist Ties Uncovered

U.S. officials emphasized that anyone assisting foreign terrorist organizations will be prosecuted to the fullest extent of the law. Assistant Attorney General for National Security John A. Eisenberg stated that Washburn willingly sent funds to an individual who openly claimed to participate in violent strikes.

Federal prosecutors added that despite her attempts to hide behind encrypted platforms, law enforcement successfully disrupted her financial pipeline to violent extremism.

FBI
FBI (Photo: Shutterstock / Pixel-shot)

Federal Accountability Ensured

The FBI reiterated its commitment to cutting off financial lifelines to foreign terrorist groups to ensure global and domestic safety.

Investigators noted that Washburn was fully aware of the illegality of her actions, pointing to a November 2025 message where she predicted her own arrest due to her fundraising activities.

The case is being handled by federal prosecutors who plan to hold her fully accountable within the American justice system.

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