A middle-class activist from upstate New York now faces terrorism charges after federal agents say she sent more than $30,000 in cryptocurrency to someone who claimed to be a fighter for Palestinian Islamic Jihad and messaged that she “wish[ed] every day were October 7.”
Story Snapshot
- Federal prosecutors say Catherine Beth Washburn sent about $30,000 in cryptocurrency to a self-described Palestinian Islamic Jihad fighter in Gaza.
- Washburn allegedly led an extremist group and shared messages praising the October 7 attacks and vowing to “fight alongside the resistance.”
- The case shows how terrorism financing and political activism are blurring, especially when cryptocurrency and online organizing are involved.
- Key facts, like the fighter’s true identity and Washburn’s exact intent, are still unproven and will be tested in court.
Who Catherine Washburn Is and What Prosecutors Claim
Federal documents say Catherine Beth Washburn, 37, is an Irondequoit, New York, resident who led a group called Direct Action Movement for Palestinian Liberation, created after the Hamas-led attacks on Israel on October 7, 2023. Prosecutors describe this group as extremist and anti-Israel, and say Washburn used social media and organizing to push a harsh, militant line. The federal complaint notes her own admission that her past fundraising and posting could get her “put away for a few life times.”
The Justice Department says Washburn carried out about 80 cryptocurrency transfers, totaling $30,116, to an account used by a person in Gaza who claimed to be a fighter for Palestinian Islamic Jihad, a U.S.-designated terrorist group. The government bases this claim on financial records and blockchain analysis, which link her wallets to the recipient’s account. However, the public documents do not show the actual wallet addresses or transaction hashes, so independent experts cannot yet verify the trail themselves.
The Messages: October 7, “Resistance,” and FBI Searches
According to the criminal complaint, Washburn’s own words are a central part of the case. In electronic messages recovered by the Federal Bureau of Investigation, she allegedly told the Gaza contact, “If I lived in Gaza, I would fight alongside the resistance.” Another cited message reportedly said she wished “every day were October 7,” a reference to the day Hamas and allied groups killed and kidnapped Israeli civilians in large-scale attacks that shocked the world.
The Federal Bureau of Investigation executed search warrants in February and March 2026, seizing devices and accounts that contained these conversations between Washburn and the self-identified fighter. Prosecutors say these messages show her intent to support violent groups, not just speak out on Palestinian rights. At the same time, the paperwork notes that the Gaza contact “claimed to participate” in Palestinian Islamic Jihad and “identified as” a fighter, but it does not show independent proof of his membership or his exact role.
Legal Gaps, Media Framing, and Why Both Sides Are Worried
The charge against Washburn is “attempting to provide material support” to a designated foreign terrorist organization, a crime that has been used more often as cryptocurrency becomes a tool for extremist fundraising. For a conviction, prosecutors must prove not just that money was sent, but that it was sent to Palestinian Islamic Jihad and that Washburn knew she was supporting that group. Right now, much of that rests on the contact’s self-description and on her broad praise for “resistance,” not on hard proof that she knew he was truly a member.
Upstate #NewYork Woman Arrested, Charged with Attempting to Provide Material Support to Designated Terrorist Group.
– Catherine Beth Washburn (37) of Irondequoit, NY, was arrested June 30, 2026, and charged with attempting to provide material support to the Palestine Islamic… pic.twitter.com/camIBHR7Ir— Adrian Shtuni (@Shtuni) July 1, 2026
Mainstream outlets and official statements mostly present the case as settled terrorism funding, using phrases like “donated $30K to Palestinian terrorists” and “Crypto Jihad” in headlines. This kind of framing can lock in a sense of guilt before any trial, especially when federal officials publicly stress Washburn’s alleged “hate of Israel and Jewish people.” For many Americans on both the right and the left, this feels like part of a wider pattern: powerful agencies and media shaping the story early while ordinary citizens only see pieces of the evidence.
What This Case Reveals About Government Power and Crypto
This case also fits a broader pattern of governments chasing extremist and terrorism money flowing through digital currencies. Reports show U.S. and Israeli authorities have seized or targeted millions of dollars in cryptocurrency connected to groups like Hamas and other militant organizations. At the same time, studies and hearings have warned that some earlier numbers about crypto terror funding were exaggerated or based on misread data, raising questions about how solid these claims really are.
For conservatives who distrust globalism and for liberals worried about civil rights, the Washburn case hits a nerve. It sits at the crossroads of activism, harsh speech, and real violence. It shows how quickly a person can move from protest leader to accused terrorist when money, encrypted messages, and foreign conflicts mix. And it highlights a deeper fear many Americans now share: that a distant federal system, backed by big media, can decide who is an extremist long before a jury hears all the facts.
Sources:
thegatewaypundit.com, facebook.com, instagram.com, timesofisrael.com, justice.gov, x.com, whec.com, sec.gov, youtube.com
