Multimillion-Dollar Crypto Fraud – Israeli Police Arrest High Profile People

Bank of Israel Initiates Against Crypto Terrorism and Money Launderings
  • Every one of them raked in millions of shekels.
  • Hogeg is also suspected of sexual offenses.

On Thursday, Israel’s police nabbed eight persons heavily suspected of involvement in a cryptocurrency fraud conspiracy. During searches on the houses and offices of the accused, officers from the anti-corruption Lahav 433 unit of the police arrested them and took them into custody.

The investigators gathered evidence and seized many items of interest as part of their investigation. According to the police, the investigation lasted many months. Furthermore, it yielded evidence of suspected money laundering and tax violations on the participants.

Moshe Hogeg, the owner of the Israeli professional soccer club Beitar Jerusalem Football Club, which participates in the Israeli Premier League, is one of the individuals implicated in the case. According to the police, the suspects carried out a crypto fraud operation “in a systematic manner” over a long period of time. The police said they mislead investors in many cryptocurrency ventures. 

According to a statement issued:

“Each pocketed millions of shekels while making false presentations to potential investors to invest in seemingly profitable ventures.”

Millions of Shekels

Every one of them raked in millions of shekels. While defrauding prospective investors into investing in dubious projects that seemed successful on the surface. According to the police, in addition to crypto fraud, Hogeg, also suspected of sexual offenses. Hogeg has categorically denied both of these charges.

In May, ex-employees of an Israeli venture capital company filed a lawsuit against Hogeg and others. Alleging that three of the country’s largest initial coin offerings (ICOs) in 2017 and 2018 were obvious scams. According to estimates, the three initial coin offerings (ICOs) by Sirin Labs, Stx Technologies Ltd (Stox), and Leadcoin raised a total of around $250 million.

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