Israeli authorities have arrested five people in a suspected crypto money laundering investigation linked to a WhatsApp-based trading group, involving transactions worth about 16 million shekels, or $5 million. Police said the case is part of wider enforcement targeting unreported digital asset activity, with the suspects also questioned over alleged fraud and providing financial services without a license. Authorities allege the group used fictitious agreements to repackage cryptocurrency proceeds and present bank transfers as loans. During home searches, police seized crypto wallets, computers and tens of thousands of shekels in cash. The five arrested were questioned on suspicion of money laundering, fraud, and operating without the required authorization. Israel’s Tax Authority also announced two additional arrests on Oct. 6 in separate suspected crypto reporting cases. One involves trades worth tens of millions of dollars, while the other concerns an Ashdod resident accused of failing to report income from roughly $13 million in crypto trades between 2019 and 2021. A November 2024 audit by Israel’s State Comptroller found a large compliance gap, with about 500 people reporting crypto activity each year on average from 2018 to 2022 out of at least 200,000 potential filers, keeping digital asset licensing and reporting under close scrutiny.