Israel Police Arrest Five Over Alleged NIS 16M WhatsApp Crypto Network

Israel Police arrested five suspects on Tuesday morning on suspicion of operating an unregistered cryptocurrency trading network through a WhatsApp group, the department announced ¹. Investigators from the National Unit for Combating Economic Crime within Lahav 433 allege the network processed approximately NIS 16 million in digital asset transactions without reporting the transfers to Israeli tax authorities ¹.

According to police investigators, the five individuals acted as partners with distinct roles within the messaging group to facilitate exchange transactions valued at hundreds of thousands of shekels each ¹. Authorities allege the suspects conducted the activity without required financial asset service permits and used deceptive methods designed to obscure the source of the capital ¹.

Disguised as Bank Loans

Investigators allege the operation used fabricated documentation to move digital asset gains into traditional bank accounts ¹. The suspects allegedly drew up loan agreements to mask the origins of the transfers, presenting cryptocurrency proceeds to commercial banks as legitimate loan disbursements ¹.

During morning raids on the suspects' homes, Lahav 433 personnel seized wallets, computers suspected of involvement in the network, and tens of thousands of shekels in cash ¹. Police questioned the individuals on suspicion of violating the Prohibition on Money Laundering Law, providing financial asset services without a permit, and obtaining property by fraudulent means ¹. Authorities stated the probe is expected to expand to additional individuals ¹.