A 27‑year‑old resident of Tel Aviv, Israel, was arrested after a joint operation by Israeli police and the Shin Bet security service. Authorities claim the suspect engaged in spying activities on behalf of the Iranian government in exchange for crypto rewards.
Israeli Spies for Crypto Reward
According to media outlet i24NEWS, investigators claim the suspect maintained contact with an Iranian agent over several months. Under instruction at the time, he photographed the homes of Israeli public officials, documented military installations, and painted politically motivated graffiti. Authorities believe he received thousands of dollars in crypto for his efforts.
A search of the suspect’s home exposed computers and digital storage devices allegedly used to communicate with the Iranian agent. Earlier this week, the Tel Aviv Magistrate’s Court extended his detention until June 26, during which the investigation will continue.
Following the discovery, Israeli law enforcement agencies noted that Iran has been actively recruiting its citizens via social media for intelligence-gathering purposes. Police and Shin Bet officials urged the public to report any suspicious outreach from foreign actors. They further emphasized that offenders would be prosecuted with “the utmost severity.”
Not the First
Notably, there has been a growing trend in the use of crypto to facilitate illegal payments due to its anonymity and ease of cross-border transfers. Reports indicate that these digital assets are being increasingly exploited by foreign intelligence services to recruit operatives.
Recently, CTW reported the case of Wang Moumou, a Chinese civil servant who was sentenced to life imprisonment. He had revealed his sensitive government position, prompting contact from foreign agents. Moumou initially provided minor details but soon escalated operations and handed over top state secrets in exchange for about $138,000 paid in crypto.
There has also been another case of Iranian government officials embezzling approximately $21 million worth of BRG tokens during an official probe. The agents, who worked with the Islamic Revolutionary Guard Corps (IRGC), quickly cashed out the funds and used them to acquire real estate, luxury vehicles, and gold.
Meanwhile, lawmakers have criticized Argentine President Javier Milei for promoting the LIBRA token, which later crashed by nearly 90% within hours. The crash led to calls for impeachment and an investigation into his ties to LIBRA. Nonetheless, Argentina’s Anti-Corruption Office recently ruled that his social media posts were not an official government endorsement.
