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A joint operation by Israeli police and the Federal Bureau of Investigation (FBI) has led to the arrest of a former tech mogul and 25 other people for their alleged participation in a fraudulent trading scheme involving cryptocurrencies.
The Times of Israel reports that Guy Grinberg, co-founder of the China-based social media platform Koolanoo, was brought to Tel Aviv Magistrate’s court for a remand hearing last week.
Grinberg and his cohorts are suspects in fraud and money-laundering offenses related to digital forex and crypto trading. The police say that the scheme targeted foreign nationals and has so far defrauded millions of dollars from victims.
Most of those who were arrested say they are unaware of being involved in any fraud and that they were only working with the company on the promise of high salaries.
Grinberg’s LinkedIn profile shows he is a vice president for business development in an unnamed forex company. The Times of Israel says he used the platform to look for potential investors in crypto and CFD (contract for difference) products.
The police say that the arrests are part of a coordinated simultaneous operation by several law enforcement agencies worldwide to detain individuals involved in financial crimes. An FBI spokesperson confirmed to The Times of Israel that the agency is working with police and the National Police of Ukraine in an ongoing investigation.
