Trois suspects, who were arrested in Israel by police, allegedly laundered millions from the French Treasury through cryptocurrency transactions. This money was obtained from grants given by government to businesses that were affected by the Covid-19 pandemic.
Israeli law enforcement busts money-laundering rings using coins to clean money for French fraudsters
The French authorities have arrested three people in Israel for allegedly providing money laundering services to defrauded criminals. The operation follows a covert investigation carried out by Lahav 433, Israel’s special crime-fighting unit, the English-language online newspaper Times of Israel and major local media reported.
The publications state that authorities suspect the arrested persons used cryptocurrencies to launder large amounts of money. These funds were later returned to French clients and the Israelis received remuneration. In an effort to uncover the conspiracy, several others were also interrogated.
Besides Lahav 433, the Yahalom investigative unit of the Israel Tax Authority and the cybercrime and international crime departments of the State Attorney’s Office also took part in these efforts. Reports detail that the Israel Police collaborated closely with both their French counterparts as well as the European Union Agency for Law Enforcement Cooperation, (Europol).
The Israelis began investigating the case in 2022. However, their investigations were launched by the French last year. France’s fraudsters exploited the government program for support of entities affected by Covid-19’s negative consequences in 2020-2021 when Europe was under lockdown.
French organizers of theft created fictitious corporations and were able to request and get compensation payments from government. Paris sought to distribute funds quickly to help businesses in financial distress and implement inadequate oversight.
The money-laundering service of Israelis was used to buy cryptocurrency and then exchange it for fiat currency through several coins. Although police officials were unable to explain the entire system in detail, they promised more information soon.
Is it possible that Israel will detain more suspects in the probe into money laundering? Leave a comment below.
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