Israeli Authorities Bust Alleged Iranian Spy Ring Funded via Crypto

• Israeli police, along with the Shin Bet security agency, recently arrested three individuals accused of spying for Iran in what’s being called a major intelligence breach.
• Instead of traditional cash, these suspects were allegedly compensated in digital assets, which made their activities harder to trace.

On June 13, Israel launched Operation Rising Lion that targeted Iranian nuclear, military, and command centers with over 200 warplanes and more than 330 precision munitions. The strikes hit key locations across Tehran, Natanz, Tabriz, and Hamadan, with drones reportedly sent ahead to quietly disable Iran’s air defenses.

Tensions remain extremely high, and global markets are feeling the heat, most especially the crypto market, which has taken a hit amid the uncertainty. As the military confrontation escalates, so do covert operations. Israeli authorities, together with Shin Bet, an Israeli internal security service, recently arrested three individuals who are suspected of spying for Iran.

Among them is a 27-year-old Tel Aviv resident accused of gathering sensitive intelligence for Iranian operatives, and in a modern twist, being paid in cryptocurrency to cover his tracks. Reports say the suspect took photos of public officials’ homes, documented military bases, and spray-painted graffiti as instructed.

During his arrest, law enforcement confiscated computers and other electronic devices believed to have been used to communicate with Iranian handlers. On Monday morning, a key suspect appeared before the Tel Aviv Magistrate’s Court, where a judge ordered him held in custody until June 26 as investigations continue. He isn’t the only one facing serious charges.

The second suspect, identified as 28-year-old Dmitri Cohen from Haifa, is accused of collecting intelligence on high-profile individuals, including the future daughter-in-law of Prime Minister Benjamin Netanyahu.

Reports say Cohen had been trailing Yardeni and her family in the weeks leading up to her now-delayed wedding to Avner Netanyahu. He allegedly snapped photos of private homes and handed over this sensitive information, all for about $500 per task, paid in cryptocurrency to keep the transactions under the radar.

A third suspect, just 19 years old and from the Sharon region, was arrested on suspicion of sharing classified information with Iranian operatives amid the growing conflict between the two countries. These arrests have amplified concerns over how digital currencies can quietly fuel modern espionage.

Not the First Time: It’s a Pattern

Meanwhile, tensions in the crypto space are spilling over into this geopolitical conflict. As featured in our recent coverage, Nobitex, one of Iran’s largest crypto exchanges, was compromised, with hackers making off with over $48 million in digital assets. The discovery was brought to light by blockchain investigator ZachXBT, who noticed suspicious transfers from multiple wallets tied to the exchange.

In response, a pro-Israel hacker group accused Nobitex of enabling terrorism financing and helping Iran dodge sanctions. They warned that their cyber actions against the platform weren’t over yet.

This isn’t the first time Iran has been accused of leveraging crypto in covert operations. Back in October 2024, Israeli authorities busted another alleged Iranian spy ring. Led by intelligence operatives known only by the codenames “Elkhan” and “Orkhan,” the network was said to have conducted over 600 missions in two years, photographing military bases, Iron Dome sites, and power stations.

Payments were discreetly made in cryptocurrency, helping the ring avoid traditional financial oversight. These incidents paint a troubling picture of how digital assets are becoming tools in real-world conflicts, not just financial speculation.

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