FBI And Israeli Police Arrest 26 Allegedly Involved In Crypto Fraud

The Federal Bureau of Investigation together with the Israeli Police arrested 26 people in suspicion of involvement in a digital currency fraud scheme. The joint operation took place in Tel Aviv, but victims, who lost millions of dollars in the scam, all reside abroad.

Local news reported that the FBI and the Tel Aviv district fraud unit of the Israeli Police carried out the investigation on criminals who conned tens of millions of shekels (1 USD = 0.31 Shekel) from victims residing abroad. In a recent joint operation, the two units arrested 26 people suspected of taking part in money-laundering offenses related to digital forex trading.

The local officials said they had received a report from the US that a group of Israelis was tricking dozens of people into a fraudulent investment scheme with cryptocurrencies. Instead of providing the promised services, the criminals stole millions of dollars from the victims.

After the investigation, the authorities detained the bad actors in an overnight operation and seized digital storage devices and computers as proof of the investigation.

According to the announcement, all of the arrested are residents of central Israel. The officials did not reveal their names nor the company they work for. However, they informed that the process will start with two of the suspects, men in their 30s, who will appear at Tel Aviv Magistrate’s Court this week. The victims of the fraud, on the other hand, are Americans.

Two of the main suspects, men in their 30s, were brought for a remand hearing at Tel Aviv Magistrate’s Court on Wednesday. The court extended the remand for one of the suspects until Friday, and the other until Sunday.

The detained individuals were not named in the statement, nor was the company for which they apparently worked. Police published a video showing the raid on the office from where the alleged crimes were committed, with workers’ faces blurred out.

The report added that in addition to the arrests in Israel, local law enforcement agencies have recently carried out similar operations in other countries around the globe.

Israel has been a major hub of online investment scams, which also operate from Cyprus and throughout Eastern Europe.