Israel Police arrest five suspects in alleged NIS 16 million WhatsApp cryptocurrency fraud scheme
Israel Police arrested five suspects on Tuesday morning on suspicion of operating a cryptocurrency trading network through a WhatsApp group, allegedly transferring NIS 16 million without reporting the transactions to Israeli tax authorities.
Investigators from the National Unit for Combating Economic Crime within Lahav 433 arrested the suspects, who allegedly conducted cryptocurrency transactions worth hundreds of thousands of shekels through the group, using fraudulent methods and techniques designed to conceal the origin of the funds.
According to investigators, the suspects were partners and held various roles in the WhatsApp group, which was used to facilitate cryptocurrency exchange transactions.
Police suspect that the transactions were conducted using sophisticated methods, without the required permits and without reporting the funds to Israel's tax authorities.
The scope of the activity under investigation is estimated at approximately NIS 16 million.
Suspects allegedly disguised cryptocurrency proceeds as loans
However, investigators suspect that the alleged offenses extended beyond the cryptocurrency trading itself.
Evidence gathered during the investigation has raised suspicions that those involved operated a mechanism to transfer proceeds from cryptocurrency transactions directly into legitimate bank accounts while presenting the funds as loans.
To facilitate the scheme, the suspects allegedly drew up loan agreements intended to conceal the true nature of the transfers.
On Tuesday morning, Lahav 433 investigators raided the homes of the five suspects and conducted searches, seizing wallets, computers suspected of having been used to commit the alleged offenses, and tens of thousands of shekels in cash.
The suspects were questioned at the unit's offices on suspicion of offenses under the Prohibition on Money Laundering Law, providing financial asset services without a permit, and obtaining something by fraudulent means.
Police believe the investigation will expand, with additional individuals expected to be questioned.
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