Five suspects arrested in Israel over $5 million crypto laundering scheme
Israeli police arrested five people suspected of laundering approximately $5 million through cryptocurrency transactions arranged in a WhatsApp group. According to investigators, the suspects used fictitious loan agreements to conceal the origin of funds deposited into bank accounts.
As reported by The Jerusalem Post, the investigation is being conducted by the National Economic Crime Unit, part of the Lahav 433 police division. The total value of suspicious transactions is estimated at 16 million shekels.
Investigators believe the suspects provided cryptocurrency trading services without the required license and failed to report their transactions to Israeli tax authorities.
How the cryptocurrency money laundering scheme operated
According to police, the suspects arranged digital asset transactions through a WhatsApp group. The proceeds were transferred directly into bank accounts, while their origin was disguised using forged loan agreements.
These documents allowed the suspects to present proceeds from cryptocurrency transactions as loan repayments rather than income from financial activities.
During searches of the suspects' residences, law enforcement officers seized cryptocurrency wallets, computers and tens of thousands of shekels in cash.
All five suspects were questioned on suspicion of money laundering, fraud and providing financial services without a license.
Israel steps up investigations into illegal cryptocurrency transactions
The latest case follows a series of investigations involving undeclared cryptocurrency income.
On October 6, the Israel Tax Authority reported two other arrests. One investigation involved digital asset transactions worth tens of millions of dollars.
In the second case, an Ashdod resident was suspected of concealing approximately $13 million in income from cryptocurrency transactions conducted between 2019 and 2021.
Israel's State Comptroller had previously identified problems with the reporting of such transactions. According to a November 2024 audit, an average of approximately 500 people reported cryptocurrency activities annually between 2018 and 2022, despite an estimated pool of at least 200,000 potential filers.
Law enforcement agencies in other European countries are also investigating large-scale cryptocurrency-related crimes. In October, Greek police uncovered an alleged Ponzi scheme whose organizers raised approximately $8 million from around 10,000 investors.
Nine suspects were implicated in the case, including two military personnel. Greek law enforcement authorities arrested a total of 17 people during the investigation.
Earlier, we reported that eight Ukrainian nationals were arrested in Poland on suspicion of involvement in a $90 million cryptocurrency money laundering scheme.
Latest Scam Alert News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
