A stay-at-home mother of 37 years of age living in Irondequoit, New York is being charged with federal crimes for making cryptocurrency transfers of more than $30,000 to a foreign terrorist organization.
Catherine Beth Washburn was apprehended by the law enforcement for her actions to supply material assistance or resources such as currency to either Palestine Islamic Jihad (PIJ) or the Al-Quds Brigades. Support and resources have a penalty of imprisonment for up to twenty years and a fine equivalent to two hundred and fifty thousand dollars.
As per the Criminal Complaint against Catherine Beth Washburn, she sent eighty-one crypto transactions, which totaled thirty thousand one hundred and sixteen USDC, to a Gazan recipient, allegedly a PIJ’s fighter engaging in attacks against Israel in the form of crypto donations. The crypto fund transfers commenced in October 2025 and continued through April 2026. The defendant is further accused of raising funds on behalf of the fighter.
Per the Federal Bureau of Investigation, Catherine Beth Washburn is the founder of the Direct Action Movement for Palestinian Liberation, an extremist organization that emerged in wake of the Hamas attacks on October 7, 2023. The group promotes opposing peaceful protests and calls for sabotage and direct confrontation as a means of liberating Palestinians.
Investigators recovered messages in which Washburn allegedly expressed strong support for violence. One November 2025 message reportedly said she expected to be imprisoned because of her fundraising and posting. Court documents describe her saying she wished “every day were October 7” and voicing excitement over killings of Israeli soldiers. A photo released by authorities shows her posing with what appear to be hand grenades in front of a Hamas flag.
“As alleged, Washburn repeatedly voiced support for violence against Israeli civilians and attempted to provide material support to the Palestine Islamic Jihad by sending cryptocurrency to an individual who claimed to participate in its attacks,”
Said Assistant Attorney General for National Security John A. Eisenberg.
U.S. Attorney Michael DiGiacomo for the Western District of New York added:
“Fueled by her self-described hate of Israel and Jewish people, Washburn went to great lengths to attempt to provide financial support to terrorist organizations that use violence to further their agendas.”
The case is part of a larger campaign by the US Treasury to investigate the illegal use of cryptocurrencies. In related events that also took place this week, the US Treasury sanctioned individuals and entities involved in the Brazilian Primeiro Comando da Capital (PCC) mafia for laundering more than $30 million in drug profits through cryptocurrencies. At the same time, a citizen of China was convicted in Honduras of cocaine trafficking and money laundering of more than $22 million, part of which was laundered through cryptocurrencies.
These developments highlight how federal agencies are tracking digital assets used to move money for terrorism, drugs, and organized crime. Blockchain analytics have made such transfers more traceable, even as stablecoins like USDC offer speed across borders.
Washburn’s initial court appearance followed her arrest. She is presumed innocent unless proven guilty. The FBI’s Joint Terrorism Task Force led the investigation.
This case draws attention to ongoing concerns about domestic extremism and the financing of foreign terrorist groups from U.S. soil. Officials continue to emphasize cutting off funding streams to protect national security.
