FNG has learned from media sources in Israel that Israeli Police have made 26 arrests overnight of suspects they believe were involved in a series of Forex and Crypto scams, involving retail traders in the US and elsewhere.

The arrests come after a joint operation of the FBI and Israeli Police, to identify those behind a number of companies which have been advertising and promoting (mainly) forex and crypto options and investments online, taking in tens of millions of dollars, but not returning client money. Sources said that one of the arrests was of a (still unidentified) prominent, well known Israeli businessman.

Two of the arrested suspects, both in their mid-30s from central Israel, are believed to be the main masterminds behind the scams. The police have already put in a continued remanded custody request for the two. Police also scooped up computers and other equipment from the Tel Aviv office where the purported scam was carried out.

We understand from sources that some of those arrested were previously involved in the scandalous Binary Options industry in Israel, which was effectively shut down in 2017 following legislation passed in Israel’s Knesset banning the operation of Binary Options brokerages. There has been little legal follow-up or fallout in Israel to Binary Options scams, and only one person – Lee Elbaz, former CEO of Yukom Communications which operated the BinaryBook and Big Option brands – is sitting in jail, in the US.

We will continue to follow this story as it develops.