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Ongoing Story· Day 25

Israel Approves Extradition of Suspect in Major Crypto Fraud Case to US

3 developments

Now 14Security

Israel Extradites Dual National Accused of Multi-Million Dollar Crypto Fraud to US

Translated & summarized from Now 14 by baba

RightNeutral tone

Hebrew · 2 newsrooms covering

Israel extradited Alexander Block, an Israeli-Russian citizen accused of stealing nearly $3 million in a cryptocurrency fraud scheme, to the United States. Block was arrested in May 2025 at Ben Gurion Airport while trying to flee to Russia. His extradition was approved after Israeli courts, including the Supreme Court, rejected his appeals, setting a precedent on computer intrusion laws.

The story in 5 lines · by baba

  • Alexander Block, accused of a $3 million crypto fraud, was extradited from Israel to the U.S.
  • Block, holding Israeli and Russian citizenship, was arrested at Ben Gurion Airport in May 2025.
  • He allegedly exploited a vulnerability in the Nomad digital currency system to steal funds.
  • Israeli courts, including the Supreme Court, ruled that exploiting security flaws is illegal computer intrusion.
  • The Supreme Court's decision set a precedent for interpreting computer intrusion laws broadly.

Israel extradited Alexander Block, a dual Israeli-Russian citizen, to the United States on Thursday, where he faces charges of exploiting a digital currency system vulnerability to steal nearly $3 million. Block, also known as Alexander Gorvich, is accused in the U.S. of fraud, computer-related offenses, trafficking in stolen property, and money laundering.

Block was apprehended at Ben Gurion Airport in May 2025 while attempting to travel to Russia. His extradition followed the exhaustion of all legal proceedings against him in Israel, including an appeal to the Supreme Court. The extradition was a collaborative effort between the State Prosecutor's Office's international department, the Israel Police's operational coordination unit, and its Interpol division.

According to the U.S. extradition request, in late July 2022, Block identified a weakness in the "Nomad" system, which facilitates cryptocurrency conversions between different networks. He allegedly manipulated the system's code to issue digital currency without providing any collateral, subsequently withdrawing assets worth approximately $3 million on August 1, 2022. He then converted these assets into various cryptocurrencies and moved them across multiple digital wallets to obscure their origin.

Israel's Supreme Court upheld the lower court's decision to extradite Block, establishing a precedent that exploiting security flaws and programming errors constitutes illegal computer intrusion. The court also ruled that the public visibility of cryptocurrency transactions does not negate money laundering charges, as the anonymity of wallet holders complicates fund tracing.

Now 14Right · Jerusalem

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