Chop shops are illegal automobile garages that buy stolen cars, disassemble them, and sell the individual parts for a profit. Chop shops often disassemble a car within hours of purchasing it from the thief who stole it—making it difficult for the police and the rightful owner to find the stolen vehicle. Chop shops are often operated in residential garages and small commercial spaces to avoid detection, but are usually part of a large criminal network or organization.

It is a crime under federal law (18 U.S.C. § 2322) to knowingly own, operate, maintain, or control a chop shop. There are significant fines and penalties under federal law for operating a chop shop—up to 15 years imprisonment for a first conviction, with the maximum fine and imprisonment doubled for any subsequent conviction.

States also have criminal laws (located in the penal or criminal code or statutes) that prohibit the operation of a chop shop. An offender may be prosecuted under state chop shop laws in addition to a federal prosecution, or instead of a federal prosecution.

In Alaska, operating a 'chop shop'—an illegal business that disassembles stolen vehicles to sell their parts—is a criminal offense. Under federal law, specifically 18 U.S.C. § 2322, it is illegal to knowingly own, operate, maintain, or control a chop shop, with penalties including up to 15 years of imprisonment for a first offense and potentially double the fines and imprisonment for subsequent offenses. Alaska state law also criminalizes the operation of chop shops, and individuals involved can be prosecuted under these state laws. These state statutes are designed to complement federal law, allowing for either state or federal prosecution, or both, depending on the circumstances of the case. The specific statutes and penalties in Alaska would be detailed in the state's penal or criminal code, and would address aspects such as possession of stolen vehicle parts, operation of a facility for dismantling stolen vehicles, and related offenses.