Feds: Woman tried to send bitcoin to Islamic State

New York 27-year-old faces federal charges

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A New York woman is facing federal charges for allegedly trying to send bitcoin to the Islamic State, according to an indictment unsealed in federal court Thursday.

The U.S. Attorney's Office of the Eastern District of New York charged Zoobia Shahnaz, 27, with bank fraud, conspiracy to commit money laundering and three substantive counts of money laundering, UPI reported

Prosecutors said Shahnaz "defrauded numerous financial institutions and obtained over $85,000 in illicit proceeds." She allegedly converted the funds to bitcoin and other cryptocurrencies to send the money out of the country to support the Islamic State, UPI reported.

Shahnaz, a U.S. citizen, allegedly lied to obtain a $22,500 loan and apply for more than a dozen credit cards to buy bitcoin and other cryptocurrencies, according to prosecutors, UPI reported.

She allegedly wired more than $150,000 to individuals and "apparent shell entities" in Pakistan, China and Turkey, prosecutors said.

Shahnaz could face up to 30 years for the bank fraud charge and 20 years for reach money laundering count, UPI reported.