Israeli Man Investigated for Millions in Crypto and Undeclared Russian Bank Accounts

An Israeli man, Leonid Lapshov, formerly of Haifa, is under investigation for alleged tax evasion and money laundering related to cryptocurrency transactions and undeclared foreign bank accounts. The State claims to possess evidence linking Lapshov to the offenses, which allegedly occurred between 2019 and 2021. Lapshov, who was employed by a commercial company until 2024, is accused of failing to report cryptocurrency sales and conversions totaling approximately 2 million shekels. Additionally, he is suspected of holding around $500,000 in one of three Russian bank accounts, with the other two holding Russian rubles and Euros.

Lapshov was questioned under caution by the tax authority and subsequently released by the Haifa Magistrate's Court under restrictive conditions. These include a 180-day travel ban, surrender of his passport, a cash deposit of 40,000 shekels, and a 400,000 shekel guarantee. The prosecution argued that Lapshov's release could lead to obstruction of justice or evasion, noting his permanent residence abroad, though he stated his current address is with his mother.

The investigation became public on September 2nd, just two days after a voluntary disclosure window for tax matters closed on August 31st. This period offered individuals an opportunity to regularize their financial affairs without facing criminal prosecution, though tax payments were still required. The program saw limited participation, with only 383 applications reporting a total of 877 million shekels in assets and an estimated tax liability of 57 million shekels, a fraction of the estimated billions in undeclared crypto assets.

The Israel Tax Authority has been increasing its focus on crypto-related tax evasion, investing in intelligence and investigative capabilities. This case follows previous investigations into individuals suspected of significant undeclared crypto activities, including alleged money laundering and evasion of millions from NFT sales. Lapshov reportedly exercised his right to remain silent during questioning.