Israeli-Linked Online Investment Scam Nets Hundreds of Millions from Australians

An international online investment fraud network known as "Sapphire Network," with operational roots in Israel and service centers across Bulgaria, Ukraine, Cyprus, Macedonia, and Israel, has reportedly been active since 2021. The scheme deceived over 4,000 Australians, accumulating hundreds of millions of dollars through false promises of AI-based trading and fabricated news articles.

Australian investigations revealed that an Australian company, Trigo XO, which claimed to sell online business leadership courses, actually served as a conduit for laundering victims' funds. The company’s websites were found to be non-functional, and victims who paid registration fees were directed to transfer money through it. The company’s manager pointed investigators to Israeli Shafi Goldberg as the true owner, though Goldberg initially denied any involvement. Subsequent business checks linked him to the Cypriot payment company Allegiant Holdings and other ventures connected to the network.

Two Australian victims interviewed by the Australian Broadcasting Corporation (ABC) reported losing nearly AUD 625,000 combined after being led to fake trading platforms by imposters posing as brokers. One victim, awaiting surgery, had to take loans to afford medical equipment, while another was convinced to invest large sums on a counterfeit website that closely mimicked an official news site.

Authorities in Australia and other countries continue to investigate the network’s scope. Financial and regulatory bodies, including Australia’s MoneySmart and anti-money laundering agency AUSTRAC, have issued warnings against using unlicensed trading and investment platforms like those operated by Sapphire Network.