Federal Authorities Arrest New York Woman Accused of Funding Palestinian Islamic Jihad via Cryptocurrency
IRONDEQUOIT, N.Y. — Federal law enforcement officials have arrested a upstate New York woman accused of leading a domestic radical extremist group and using decentralized digital currencies to funnel tens of thousands of dollars to a designated foreign terrorist organization.
Catherine Beth Washburn, 37, of Irondequoit—a suburb of Rochester, New York—faces severe federal charges after an investigation by the FBI’s Joint Terrorism Task Force (JTTF) exposed her alleged role in financing violent operations in the Middle East. According to a criminal complaint unsealed in federal court, Washburn not only provided material support to the Palestinian Islamic Jihad (PIJ) but also actively promoted violent extremism domestically through her leadership of a radical organization called the Direct Action Movement for Palestinian Liberation (DAMPL).
1. Main Facts of the Case
The federal criminal complaint paints a portrait of a highly radicalized domestic actor who transitioned from political activism to direct, illicit financial support of international terrorism. Washburn has been charged with attempting to provide material support to a designated Foreign Terrorist Organization (FTO), specifically the Palestinian Islamic Jihad. If convicted of the charges, she faces a maximum penalty of 20 years in federal prison and a $250,000 fine.
The Defendant and the Organization
Washburn, a resident of Monroe County, New York, served as the primary leader and organizer of DAMPL. According to the Department of Justice, DAMPL was established in the immediate aftermath of the October 7, 2023, terrorist attacks led by Hamas against Israel. Unlike mainstream advocacy groups that engage in peaceful demonstrations or lobbying, DAMPL’s founding doctrine explicitly rejects peaceful protest.
Federal investigators noted that DAMPL’s charter and operational guidelines advocate for "direct action." In the context of the group’s operations, this term translates to property destruction, vandalism, and coordinated acts of sabotage targeting corporations, institutions, and individuals perceived to have ties to or sympathy for the State of Israel.
The Targeted Terrorist Group
The beneficiary of Washburn’s alleged financial scheme, the Palestinian Islamic Jihad (PIJ), is a violent extremist group founded in the late 1970s. Headquartered in Damascus, Syria, with its primary operational footprint in the Gaza Strip and the West Bank, PIJ is committed to the destruction of Israel and the creation of an Islamic Palestinian state.
The United States designated PIJ as a Foreign Terrorist Organization in 1997. The group has claimed responsibility for numerous suicide bombings, rocket attacks, and hostage-taking incidents targeting both military personnel and civilians.
2. Chronology of Radicalization and Terrorist Financing
The timeline of Washburn’s alleged criminal conduct spans from the autumn of 2023 through late 2025, illustrating a rapid escalation from online radicalization to direct participation in international terror finance.
[Oct 7, 2023] ──> [Late 2023] ───────> [Early 2024 - 2025] ──> [Nov 2025] ───────> [Post-Nov 2025]
Hamas/PIJ Washburn founds 80 Crypto transfers Self-aware text FBI JTTF arrest
Attack on DAMPL; contacts totaling $30,000+ acknowledging & federal charges
Israel Gaza PIJ fighter to terrorist fighter prison risk unsealedFall 2023: The Catalyst
Following the October 7, 2023, attacks on southern Israel, Washburn reportedly experienced a rapid radicalization process. She established DAMPL shortly thereafter, positioning the group as a militant vanguard within the broader pro-Palestinian movement in upstate New York. During this period, she began utilizing encrypted messaging applications to establish contact with individuals overseas, eventually connecting with a person who claimed to be an active combatant for the PIJ in the Gaza Strip.
2024 to Late 2025: The Financial Pipeline
Over a period of nearly two years, Washburn allegedly converted her ideological commitment into tangible financial assistance. Using various cryptocurrency platforms, she initiated approximately 80 separate digital asset transfers to a wallet controlled by the PIJ fighter. In total, the transactions funneled more than $30,000 directly into the hands of the foreign combatant.
November 2025: Clear Knowledge of Illegality
By late 2025, Washburn’s communications indicated she was fully aware of the illegal nature of her activities and the potential consequences of a federal investigation. In an encrypted text message recovered by investigators dating to November 2025, Washburn joked about her vulnerability to prosecution:
"Based on my passed [sic] fundraising and posting Im [sic] gonna get put away for a few life times," she wrote, appending a laughing emoji to the message.
The Investigation and Arrest
The FBI’s Joint Terrorism Task Force, utilizing blockchain analytics, physical surveillance, and digital forensics, compiled a comprehensive evidentiary file against Washburn. Upon securing a federal warrant, tactical teams arrested Washburn at her Irondequoit residence without incident. A subsequent search of her property and digital devices yielded further evidence of her allegiance to foreign terrorist entities.
3. Supporting Data and Evidence
The prosecution’s case relies on a combination of digital forensics, financial records, and recovered media that directly link Washburn to the PIJ and demonstrate her ideological motivations.
The Cryptocurrency Trail
To bypass traditional banking compliance systems and international sanctions, Washburn relied exclusively on cryptocurrency. Federal investigators mapped the flow of funds from Washburn’s domestic accounts through intermediary digital wallets to the final destination wallet utilized by the PIJ operative in Gaza.
| Transaction Metric | Details |
|---|---|
| Total Number of Transfers | Approximately 80 unique transactions |
| Total Cumulative Value | Exceeding $30,000 USD |
| Asset Type | Various mainstream cryptocurrencies |
| Recipient Profile | Verified digital wallet linked to active PIJ combatant |
Decrypted Communications
The FBI recovered thousands of messages from Washburn’s electronic devices. The correspondence details her deep-seated animus toward Jewish people and the State of Israel, as well as her explicit endorsement of violence.
- On Jewish People and Israel: In one exchange with the PIJ fighter, Washburn stated that she hated Jewish people "very much" and expressed her desire that Israel "would disappear."
- On the October 7 Attacks: Washburn explicitly glorified the massacre of Israeli civilians, writing, "I wish every day were October 7th."
- On Active Combat: She expressed a desire to take up arms herself, stating, "If I lived in Gaza, I would fight alongside the resistance."
- On the Casualties of War: She admitted to experiencing emotional gratification from violence, telling her contact she felt "excited every time I see news of the killing of an occupation soldier."
Photographic Evidence
Among the most damning pieces of evidence recovered during the investigation was a photograph of Washburn. In the image, which was subsequently released by the Department of Justice, Washburn is pictured holding two military-grade hand grenades while posing directly in front of a Hamas flag.
Federal prosecutors assert that this imagery demonstrates that her support went beyond mere political expression and crossed into active preparation for, or celebration of, armed conflict.
4. Official Responses and Legal Proceedings
The arrest of Washburn drew sharp condemnation from both federal prosecutors and counterterrorism officials, who emphasized the zero-tolerance policy of the United States government regarding the financing of designated foreign terrorist organizations.
Justice Department Statement
U.S. Attorney Michael DiGiacomo, who is prosecuting the case, emphasized the severity of Washburn’s actions and the hate-driven nature of her conduct.
"The defendant went to great lengths to finance violence and bloodshed, driven by her self-described hate of Israel and Jewish people," DiGiacomo said. "Our office will use every tool at our disposal to identify, disrupt, and prosecute individuals who seek to support terror from within our own communities."
FBI Counterterrorism Division Response
Coult Markovsky, the Acting Assistant Director of the FBI’s Counterterrorism Division, reiterated the bureau’s focus on disrupting the financial networks that sustain global terror networks.
"This individual, as alleged in the criminal complaint, provided money to a foreign terrorist organization engaged in acts of violence," Markovsky stated. "The FBI is committed to cutting off funding to terrorist groups and will continue to work side-by-side with our Justice Department partners to make sure anyone who engages in terrorism or provides assistance to such organizations is held fully accountable in our justice system."
5. Broader Implications
The arrest of Catherine Beth Washburn highlights several emerging trends in domestic counterterrorism, the evolution of decentralized finance, and the polarization of political movements in the United States.
The Evolution of Terrorist Financing
Washburn’s case underscores the growing reliance of foreign terrorist organizations on decentralized, peer-to-peer financial networks. While traditional banking systems are heavily monitored under the Bank Secrecy Act and international anti-money laundering (AML) protocols, cryptocurrency allows domestic sympathizers to transfer funds directly to combatants in active war zones.
However, as this case demonstrates, the public nature of blockchain ledgers allows specialized federal units like the FBI’s JTTF to track transactions once a suspect’s digital wallet is identified.
Homegrown Violent Extremism (HVE) Post-October 7
Since the October 7 attacks, federal intelligence agencies, including the FBI and the Department of Homeland Security (DHS), have repeatedly warned of an elevated threat landscape within the United States. The conflict has acted as a radicalizing catalyst for individuals across the ideological spectrum.
Washburn’s arrest is part of a broader pattern of federal law enforcement actions targeting domestic actors who have crossed the line from protected First Amendment speech into criminal material support.
- The New Year’s Eve Plot: Recently, the FBI arrested four alleged members of a separate radical pro-Palestinian group who were accused of plotting bomb attacks targeting public gatherings on New Year’s Eve.
- The Louisiana Indictment: In another case, a Louisiana man with direct ties to the October 7 attackers was indicted for conspiring to provide material support to Hamas.
The Distinction Between Activism and Material Support
Washburn’s leadership of DAMPL illustrates the challenges law enforcement faces in monitoring extremist groups that operate under the banner of political activism. While protesting, organizing boycotts, and expressing anti-Zionist or anti-Israel sentiments are protected activities under the United States Constitution, the line is crossed when individuals engage in property destruction or attempt to send resources—whether currency, assets, or equipment—to organizations designated as FTOs by the U.S. State Department.
Under federal law (18 U.S.C. § 2339B), the definition of "material support" is broad. It encompasses not only direct funding but also logistical support, lodging, training, safe houses, false documentation, and communications equipment. In Washburn’s case, the combination of cryptocurrency transactions to an active fighter and her explicit leadership of a group advocating "direct action" provided federal prosecutors with the necessary legal threshold to secure an indictment.
As the legal proceedings against Washburn move forward in federal court, her case will likely serve as a benchmark for how the Department of Justice prosecutes domestic actors who utilize digital assets to fund foreign conflicts from American soil.
