Israel Police arrest five suspects in alleged NIS 16 million WhatsApp cryptocurrency fraud scheme

Israel Police arrested five suspects on Tuesday in an alleged NIS 16 million cryptocurrency fraud scheme operated through a WhatsApp group. The suspects are accused of conducting transactions without reporting to tax authorities and using loan agreements to disguise proceeds. Lahav 433 investigators conducted raids, seizing wallets, computers, and cash.

Israel Police arrested five suspects on Tuesday morning on suspicion of operating a cryptocurrency trading network through a WhatsApp group, allegedly transferring NIS 16 million without reporting the transactions to Israeli tax authorities. Investigators from the National Unit for Combating Economic Crime within Lahav 433 arrested the suspects, who allegedly conducted cryptocurrency transactions worth hundreds of thousands of shekels through the group, using fraudulent methods to conceal the origin of the funds. The suspects were partners and held various roles in the WhatsApp group. Police suspect the transactions were conducted without required permits and without reporting to tax authorities. Evidence suggests the suspects operated a mechanism to transfer proceeds from cryptocurrency transactions into legitimate bank accounts while presenting the funds as loans, drawing up loan agreements to conceal the true nature of the transfers. On Tuesday morning, Lahav 433 investigators raided the homes of the five suspects, seizing wallets, computers, and tens of thousands of shekels in cash. The suspects were questioned on suspicion of offenses under the Prohibition on Money Laundering Law, providing financial asset services without a permit, and obtaining something by fraudulent means. Police believe the investigation will expand, with additional individuals expected to be questioned.