Israeli Crypto Trader Accused of Massive Tax Evasion
Arsuf resident Oved Cohen, 32, is under scrutiny for allegedly failing to pay taxes on over 35 million shekels ($9.6 million) earned through cryptocurrency trading.
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Cohen is accused of using his crypto earnings to purchase luxurious real estate abroad, including premium apartments in Portugal.
As reported by Calcalist, sources close to the investigation revealed that Cohen was an active cryptocurrency trader, primarily dealing in Bitcoin on platforms such as Binance and Nexo from 2018 to 2023.
Over this timeframe, he allegedly generated profits of 47.6 million shekels ($13.1 million) but declared only 12.4 million shekels ($3.4 million) for tax purposes.
Cohen reportedly relied on intricate financial strategies to mask his illegal earnings. He exchanged Bitcoin for other cryptocurrencies and stablecoins, created accounts on trading platforms using different names and citizenships, and deliberately avoided recording his transactions.
It remains unclear how Cohen evaded KYC checks—whether through forged passports or by leveraging the personal documents of associates and relatives.
The money was directed toward acquiring property in Portugal and opening a bank account there, all while evading taxes on his cryptocurrency profits.
The charges against Cohen include providing incomplete reports to Israeli tax authorities, withholding critical financial details from his accountant, and submitting a fraudulent income tax return.
Prosecutors assert that Cohen’s actions have dealt a blow to the national budget and undermined public confidence in Israel’s financial infrastructure. He faces a possible 10-year prison term and considerable monetary penalties.
It’s worth highlighting that Israel has not adopted the global financial information-sharing program, which has resulted in nearly 99% of local crypto investors neglecting their tax obligations while trading on overseas platforms.
The precise error Oved Cohen made and how Israeli law enforcement uncovered his concealed profits is still unclear. But one thing is evident—this trader’s luck has run out.
Read on: Crypto Regulations in Israel — Key Features and Considerations
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