Crypto trader accused of $9.5M tax evasion and money laundering
Crypto trader accused of $9.5M tax evasion and money laundering
Israeli prosecutors allege Oved Cohen hid millions in income, laundered funds through foreign platforms, and used illicit profits to buy property in Portugal.
Oved Cohen, a 32-year-old Israeli businessman, faces criminal charges for evading taxes on 35 million shekels (approximately $9.5M) of income through cryptocurrency trading and laundering the proceeds. Between 2019 and 2022, Cohen allegedly hid substantial income from the tax authorities while operating on international trading platforms. The prosecution claims he used the illicit funds to purchase property in Portugal and transferred money abroad, all while concealing his wealth from authorities and submitting false reports.
According to the notice of suspicion from the Cyber Unit at the Office of the State Attorney, Cohen was actively engaged in cryptocurrency trading on the Binance platform between 2018 and 2023. During the relevant period (2019 to 2022), he generated income totaling 47.6 million shekels ($13M), but only reported 12.4 million shekels ($3.4M) to the tax authorities.
The notice of suspicion also alleges that Cohen failed to report the opening of his business to the tax authorities or state officials until more than four and a half years after it began operating. Furthermore, he did not maintain proper accounting records, books, or legal documentation throughout the business's operation. He conducted his trading mainly through various accounts on foreign platforms, using different registration details and multiple citizenships, even though the business was operated from Israel and he is a resident of Israel, primarily using cryptocurrencies.
Additionally, Cohen is accused of submitting false and incomplete reports to the tax authorities, failing to disclose his wealth and income to his accountant, and providing a false capital statement to the Income Tax Authority. He falsely reported his income from the business as non-business income, categorizing it as capital gains instead.
After receiving the proceeds of his alleged crimes, Cohen is accused of laundering the capital by converting it into a different type of cryptocurrency and transferring part of the funds to another trading platform abroad, Nexo. This way, he allegedly laundered $4.6 million with the intent of hiding or disguising its origin. Cohen is also accused of using the illegal funds to purchase the apartment in Portugal and transfer money to a bank account there, which he did not report to the tax authorities.
In the hearing letter sent to Cohen this week, attorney Maytav Dagan, Senior Deputy to the Tel Aviv Criminal District Attorney, informed him of the decision to prosecute him, subject to a hearing, for offenses related to the omission of income under Section 220 of the Income Tax Ordinance, and for money laundering under the Prohibition of Money Laundering Law. These charges are based on his wide-ranging and systematic activities in foreign trading platforms.
