U.S. prosecutors said Thursday that they had charged a Long Island, New York woman with laundering more than $85,000 in fraudulently obtained money through Bitcoin to help Islamic State. Zoobia Shahnaz, 27, was arrested Wednesday on charges of bank fraud, conspiracy and money laundering. Shahnaz pleaded not guilty on Thursday before U.S. Magistrate Judge Kathleen Tomlinson in New York. Prosecutors said that between March and July of this year, Shahnaz obtained a loan and multiple credit cards by making false representations to financial institutions, and used them to buy Bitcoin. A lawyer for Shahnaz, Steve Zissou, could not immediately be reached for comment.