International Investment Scam Busted in Turkey, Nine Israelis Among 200 Arrested

Turkish authorities have dismantled an international investment fraud network that operated from Turkey, allegedly defrauding victims worldwide of over $3 billion. The Istanbul Prosecutor's Office announced the operation, which targeted individuals through service, consulting, and tourism fronts. Turkish Justice Minister Yılmaz Tunç stated on Friday that Israeli nationals are believed to have led the network, referred to in the indictment as "Israeli fraud brokers."

In total, 201 individuals were arrested, including nine Israelis, one of whom also holds Portuguese citizenship. According to Turkish claims, the network utilized 29 companies and 44 service centers to recruit potential clients via social media, search engines, and websites, promising high returns on foreign exchange and cryptocurrency investments. Those interested were allegedly persuaded by representatives speaking their native language to transfer small sums initially, followed by larger amounts, with fabricated "profits" displayed on trading platforms.

When investors attempted to withdraw funds, they were reportedly told their accounts were "blocked" and required additional payments like "taxes" or "unlocking fees." The prosecution alleges that the money was never invested but instead transferred to bank accounts and crypto wallets controlled by the network outside Turkey. The alleged perpetrators were instructed not to target Israeli or American citizens, while victims were identified from countries including the UAE, UK, Canada, Australia, Ireland, Russia, Singapore, Malaysia, China, Switzerland, Belgium, Sweden, and South Korea.

Turkish intelligence (MIT) findings cited in the indictment suggest the Israeli individuals began relocating operations to Turkey and other countries after Israel banned binary options trading in 2017. The operation involved raids on 286 locations in Istanbul and the Muğla province by various Turkish law enforcement and intelligence agencies, including Interpol. While 201 suspects have been arrested out of 248 indicted, the search for the remaining individuals continues.

Assets seized or frozen include real estate, vehicles, bank accounts, and crypto assets, valued at approximately 1.5 billion Turkish Lira (about $31 million), including 80 vehicles and 12 properties. While Turkish authorities did not provide exact national breakdowns, reports indicate 156 Turkish arrests, 11 from Pakistan, nine from Israel, two each from Azerbaijan, Syria, Jordan, Ukraine, Thailand, Indonesia, and Morocco, and one each from Kazakhstan, the Philippines, Iran, China, Lebanon, the Palestinian Authority, Mexico, Egypt, Mozambique, Argentina, and Bangladesh, representing foreign nationals from 20 countries. However, the exact number of Israelis arrested remains unconfirmed by official sources, though it is indicated they were among those detained.