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A cryptocurrency-powered money laundering network believed to have defrauded the French government of millions of euros has been busted by an undercover investigation in Israel. In a joint statement on Monday, local police and the diamond unit tax authority announced that three alleged fraudsters accused of laundering money from overseas crimes were arrested in Israel.
French Official's Investigation
The economic incentives given out by the French government during the COVID-19 epidemic were a crucial component of the criminal plot, according to The Times of Israel. French officials took the initiative in the scheme's investigation last year, and Israel's police followed through on an undercover operation. Other suspects who have not been identified have also been detained and are being questioned. The Yahalom unit of the tax authorities and the special crime unit Lahav 433, Israel's equivalent of the FBI, are handling the investigation. They are working along with Europol and French law enforcement across Europe. The amount of money involved in the entire scheme or the amount paid to the Israeli crooks for allegedly laundering money is still unclear. Officials say the three suspects will be held "for as long as necessary."
Money Laundering in Crypto Industry
Money laundering accounts for a fraction of the cryptocurrency industry at the moment. Given the current commotion surrounding cryptocurrency mixer Tornado Cash, Bitcoin laundering is a hot issue. Chainalysis claims cybercriminals laundered $8.6 billion in digital assets this year, representing 0.05% of all cryptocurrency transactions. Crypto criminals primarily target centralized exchanges with loose regulations. According to the United Nations, $800 billion to $2 trillion in fiat currency escapes annually outside of the ecosystem. The amount equals about 5% of the world's gross domestic product.