A crypto fraud where the hackers targeted European investors, was recently investigated by the Israel Police Cyber Crime Unit. The hackers used phone calls, promising crypto profits, to trap the investors instead of manipulating figures. It must be noted that the operation involved officials from the Israel Money Laundering and Terror Financing Prohibition Authority.
Crypto Fraud Investigation
The Israel Police Cyber Crime Unit has ceased a crypto fraud where malicious hackers used harmful software to steal millions from investors. The crypto fraud company had allegedly created a “sting software” to trick the investors which resulted in losing large sums of money.
As per the recent report, the Israeli authorities led a raid on the location where the alleged crypto fraud occurred. It highlights that the individuals arrested did not fit the conventional profile of offenders.
According to the report, “the raid made it clear that most of those who operated on-site were very young, had no criminal records, and were likely trying to make some easy money.” It further alleges that high-profile individuals in Israel might have played a role in orchestrating the crypto fraud. It can be said that influential crime families in Israel allegedly have ties to the fraud operations.
How Did It Work?
The report states that the fraud reportedly targeted European investors with outbound phone calls while fooling them with crypto profits. It must be noted that the victims got login details that appeared to belong to a legitimate investment portfolio. However, this was not the case.
The software developers controlled the crypto operation, manipulating profit figures to make it seem like a successful investment, when in fact, it was empty. The victims only discovered it was a fraud when they attempted to withdraw money and then found nothing in their accounts.
This crypto fraud nearly affected people from Serbia, Ukraine, Georgia, Germany, Spain, and Israel. The operation reportedly had many individuals involved, “the investigation involved officials from the Israel Money Laundering and Terror Financing Prohibition Authority, the Israeli Tax Authority, and the Bavarian Cyber-Warfare Unit of the German police, who arrived in Israel and took part in the raids alongside their Israeli counterparts.”
It comes shortly after the Israeli police uncovered a quarter-billion-dollar crypto fraud. However, in the previous month, a report surfaced alleging that “crypto entrepreneur Moshe Hogeg has been hit with criminal charges.” The charges arise over Hogeg allegedly using more than $290 Million in investor funds for his own benefit.
The funds allegedly came from 4 crypto projects of Hogeg from 2017 to 2018. During two of the projects, Hogeg allegedly promoted ventures that didn’t even exist. In the two other projects, it is alleged that Hogeg knowingly accepted investor funds despite being aware of their imminent failure from the start.