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Feds Bust Upstate New York Activist Over Secret $30K Crypto Pipeline To Gaza Terror Group

Catherine Beth Washburn of Irondequoit, New York, is facing up to 20 years in prison after being arrested on federal charges for attempting to financially support a designated foreign terrorist organization.

The Department of Justice announced the arrest of the 37-year-old, accusing her of funneling cryptocurrency to the Palestine Islamic Jihad (PIJ), a group also known as the Al-Quds Brigades. Along with the potential prison sentence, the charge carries a maximum fine of $250,000.

Federal prosecutors identified Washburn as a core leader of the Direct Action Movement for Palestinian Liberation (DAMPL). According to court documents, the extremist group formed in the immediate aftermath of the October 7, 2023, Hamas attacks on Israel.

Investigators state that DAMPL openly rejects peaceful protest, choosing instead to engage in “direct action”—which includes sabotage and property destruction—against organizations and entities they associate with Israel.

FBI
FBI (File)

“As alleged in the complaint, this defendant, fueled by her self-described hate of Israel and Jewish people, went to great lengths to attempt to provide financial support to terrorist organizations that use violence to further their agendas, including the Palestine Islamic Jihad,” said U.S. Attorney Michael DiGiacomo for the Western District of New York. DiGiacomo noted that despite her cryptic communications with a fighter located thousands of miles away, law enforcement managed to stop her efforts.

The criminal complaint relies heavily on an investigation by the FBI’s Joint Terrorism Task Force, which executed search warrants in February and March 2026. Investigators recovered a stash of electronic messages between Washburn and an individual who identified himself as a PIJ fighter actively engaging in attacks against Israel from Gaza. In the retrieved messages, Washburn and the individual talked extensively about weapons, ammunition, and specific military targets.

The recovered texts show Washburn heavily praised the fighter’s actions, writing, “If I lived in Gaza, I would fight alongside the resistance,” and adding, “I wish every day were October 7th.” In those same conversations, Washburn explicitly stated that she hated Jewish people “very much” and wished Israel “would disappear.”

“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. He added that anyone aiding foreign terrorist groups will face the full extent of federal law.

A deeper look into Washburn’s financial records revealed she sent approximately 80 separate cryptocurrency transfers to an account used by the Gaza fighter. The transfers totaled 30,116 USDC, which is valued at exactly $30,116. In one message from November 2025, Washburn appeared to acknowledge the criminal nature of her actions, texting, “Based on my passed [sic] fundraising and posting Im [sic] gonna get put away for a few life times,” accompanied by a laughing emoji. Investigators also recovered a photograph of Washburn posing with two hand grenades in front of a Hamas flag.

Washburn made her initial court appearance before U.S. Magistrate Judge Mark W. Pedersen and was ordered to remain detained.

“Providing financial support to a designated foreign terrorist organization is a serious federal crime that directly fuels violence and puts innocent lives at risk,” said Allen D. Davis II, Special Agent-in-Charge of the FBI Buffalo Field Office. Davis emphasized that the Joint Terrorism Task Force will continue to aggressively pursue anyone attempting to finance terrorism or promote violent extremism.

The case is being prosecuted by Assistant U.S. Attorney Brett A. Harvey and Trial Attorney Patrick Cashman of the Department of Justice’s National Security Division. Legally, the criminal complaint is strictly an accusation, and Washburn is presumed innocent unless and until she is proven guilty in a court of law.

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