Cryptocurrency Fuels Organized Crime in Israel as Police Struggle to Keep Pace

Israeli organized crime groups are increasingly using cryptocurrencies like Bitcoin and Tether to launder money and finance illicit activities, according to police. The trend is part of a broader shift in how these groups operate, with traditional methods being replaced by digital wallets and blockchain transactions.

The dispute between two powerful organizations, the Mosli and Jarushi groups, has been linked to a cryptocurrency venture worth tens of millions of shekels. The feud allegedly began over a disputed payout from this venture, leading to attacks on Japanika restaurant branches in several cities.

Police say cryptocurrencies offer an attractive option for organized crime due to their ability to facilitate rapid, anonymous transactions across borders. Attorney Yaron Gigi noted that digital currencies allow for quick and discreet money movement without the need for physical cash or bank transfers.

The use of cryptocurrencies is not limited to these two groups, with police intelligence suggesting that other organizations are also involved in similar activities. Commander Dudi Katz stated that crime groups across various sectors are using cryptocurrency to launder money and finance their operations.