Nine Israelis Among 201 Arrested in Turkey for $3 Billion Investment Fraud Scheme

Turkish authorities have dismantled an international investment fraud network operating from Turkey, leading to the arrest of 201 individuals, including nine Israeli citizens. The network allegedly defrauded victims worldwide of over $3 billion through sophisticated online schemes. Turkish prosecutors stated that the group operated under the guise of service, consulting, and tourism companies, using online advertisements on social media, search engines, and websites to target potential victims interested in foreign exchange and cryptocurrency investments.

Victims were reportedly persuaded to make small initial investments that were later increased, with the fraudsters presenting fabricated profits to encourage further deposits. When victims attempted to withdraw funds, they were allegedly told their accounts were blocked and additional payments were required for taxes or release. Investigators believe the money was not invested as promised but was instead transferred to bank accounts and cryptocurrency wallets controlled by the network. Some victims reportedly lost hundreds of thousands of dollars.

The operation involved the Turkish Interior Ministry, the National Intelligence Organization (MIT), Istanbul police, and Interpol. The investigation focused on fraud, money laundering, and organized crime. The network allegedly operated through 29 companies and 44 call centers, often changing company names when complaints arose. Platforms mentioned in the investigation include Inefex, Quantum AI, Algo Education, and Exentral-Int.

According to the MIT findings cited by prosecutors, the network's operators, identified as Israeli individuals, shifted their activities abroad after Israel banned binary options trading in 2017. The fraudsters were instructed not to target Israeli or American citizens, focusing instead on individuals in countries like the UAE, UK, Canada, Australia, Russia, and China, among others. The operation included raids on hundreds of addresses in Istanbul and the Muğla province, resulting in the seizure or freezing of real estate, vehicles, bank accounts, and crypto assets valued at approximately 1.5 billion Turkish Lira.

Turkish authorities continue to investigate the full scope of the operation and the identities and roles of all involved. One key suspect identified is a 42-year-old Israeli citizen who also holds a Portuguese passport. The investigation is examining charges including fraud, capital markets law violations, and money laundering.