Israel Arrests Three Cryptocurrency Fraud Suspects

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Israeli police have arrested three people suspected of a multi-million dollar money laundering scheme stolen from French public coffers using digital assets.

The secret investigation was carried out duringover the past few months, together with the Israeli police and the country's Tax Administration. Foreign investigative bodies, Europol and the French police, cooperated with the Israeli authorities.

According to investigators, "large-scale“fraud” with cryptocurrencies was committed against the state treasury in France. However, they are also considering the possibility that the crime was committed in Israel.

In accordance with tax lawsIsrael, the sale of cryptocurrencies is subject to capital gains tax of up to 33%. On the other hand, if the activity is subject to business income tax, it can be as high as 50%.  Israeli authorities said the crime was completely organized by an organized crime group.

"Several suspects formed a groupfor money laundering from abroad and Israel. Some of these funds were the result of crimes committed abroad using digital currencies on various platforms to hide the identity of the owners of the funds and their movements,” the agencies said.

Along with three people arrested for questioningSeveral more citizens were detained on suspicion of money laundering, fraud and tax offenses, as well as deliberate concealment of information about  income.

Let us recall that on August 1, Israel entered intoA law is in force that encourages the use of alternative digital payment methods and prohibits large-value cash and bank check transactions.