Israeli Police Bust Major Crypto Exchange Operating Via WhatsApp
Translated & summarized from Cursorinfo by baba
Israeli police have arrested five suspects and uncovered an illegal cryptocurrency exchange with a 16 million shekel turnover that operated via a private WhatsApp group. The suspects allegedly laundered money by disguising crypto transactions as fake loans to evade taxes. Police seized digital wallets, cash, and computers during searches.
The story in 5 lines · by baba
- Israeli police arrested five suspects in a major illegal cryptocurrency exchange bust.
- The illicit exchange operated through a private WhatsApp group and had a 16 million shekel turnover.
- Suspects allegedly laundered cryptocurrency profits by disguising transactions as fake loans.
- Police seized crypto wallets, cash, and computer equipment during searches.
- The operation was uncovered by undercover officers monitoring online advertisements.
Israel's Lahav 433 economic crime unit has dismantled a large, illegal cryptocurrency exchange that operated through a private WhatsApp group. The operation, which involved extensive searches and the arrest of five suspects from the country's central region, uncovered a shadow turnover estimated at 16 million shekels. The suspects allegedly used the encrypted messaging service to conduct hundreds of thousands of shekels in virtual asset and currency exchanges, evading Israeli tax authorities.
Investigators discovered that the group facilitated illicit transactions by transferring funds to regular bank accounts, disguising them as fictitious private loans. To bypass banking compliance and avoid suspicion, they created fake loan agreements as a formal basis for payments, which banks did not monitor for actual repayment. This scheme was designed to launder money earned from cryptocurrency sales.
During the raids, police seized hardware crypto wallets, computer equipment used for the illegal operations, and tens of thousands of shekels in cash. The suspects were reportedly caught off guard, attempting to hide cash and devices in shoe boxes and sneakers, but all evidence was recovered.
Law enforcement identified the operation by monitoring online advertisements. Undercover officers infiltrated the WhatsApp group, posing as customers, conducted test purchases, and gathered evidence before proceeding with the arrests. The report also notes a separate incident where hundreds of Israelis fell victim to scammers.
