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Israel Charges US Student in Alleged Iran Crypto Spy Plot

Israeli prosecutors alleged he carried out surveillance missions and received over $1,379 in cryptocurrency payments.

Written By Iyiola Adrian Iyiola Adrian
Edited by Shubham Soni Shubham Soni
Published 57 minutes ago·Updated 55 minutes ago
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Israel Charges US Student in Alleged Iran Crypto Spy Plot

Key Highlights

  • Eli Lavon was indicted in Israel for allegedly carrying out tasks for Iranian intelligence.
  • Prosecutors say he was paid about $1,379 in cryptocurrency for completing surveillance assignments.
  • Authorities say Lavon is the first American prosecuted in Israel as part of the country’s recent Iran-linked espionage cases.

A 21-year-old American student living in Israel has been charged with spying for Iran after prosecutors alleged he carried out surveillance tasks for people linked to Iranian intelligence in exchange for cryptocurrency. 

According to a CNN report, the student, Eli Lavon, was formally indicted on Friday by Israel’s State Attorney’s Office. He faces two charges of contacting a foreign agent and 14 charges of sharing information that could help an enemy.

Telegram job led to alleged contact

Prosecutors say the alleged activities began in late 2025 after Lavon responded to a job advertisement on the Telegram messaging app while visiting family in the United States. According to the indictment filed by Israel’s State Attorney’s Office, he was contacted about a month later by someone prosecutors say was working for Iranian intelligence. 

After returning to Israel, he allegedly received a series of assignments that involved gathering information and documenting locations in Jerusalem. Prosecutors claim he completed the tasks while communicating through two Telegram accounts and using three different mobile phones to stay in touch with the foreign agents.

Surveillance tasks allegedly carried out in Jerusalem

The indictment alleges that Lavon filmed an abandoned building in a religious neighborhood of Jerusalem and recorded video inside a grocery store selected by the handler. Authorities believe these locations were chosen for a reason, although the indictment does not explain why each site was important.

In another assignment, he was instructed to leave a cigarette pack containing a note that read, “The job is complete,” inside a restroom trash can at Hadar Mall in Jerusalem. Prosecutors say he received hundreds of dollars in cryptocurrency for carrying out those activities.

Authorities further allege that Lavon later cut off contact with the first handler but was soon approached by another person linked to Iranian intelligence. 

During that exchange, prosecutors say he hid a USB flash drive wrapped in a 50-shekel note at a restaurant in Jerusalem and sent the handler a selfie along with a picture of his passport. The second handler also asked him to provide the names of fellow students at his seminary, but prosecutors say Lavon refused to involve his classmates. 

The indictment states that he received about $518 in cryptocurrency from the second contact, bringing his total crypto payments to roughly $1,379.

Officials warn about online recruitment

Ronit Shentzer Yaakobi of the Jerusalem District Attorney’s Office said the case illustrates how foreign intelligence agencies use online platforms to recruit individuals.

“This indictment illustrates how foreign intelligence agencies attempt to exploit the digital sphere to identify, recruit, and operate individuals from within Israel, and how important it is to remain vigilant and immediately sever contact when approached in this manner,” she said.

Lavon’s lawyer, Raz Bar Tzvi, disputed the allegations. He stated that simply being contacted online by a foreign individual does not make someone a spy. He also said the facts described in the indictment do not reflect what actually happened, but did not say how Lavon plans to respond to the charges in court.

Part of a wider espionage crackdown

Israeli authorities say the case is part of a larger effort to stop alleged spying activities linked to Iran. Since 2023, around 60 people have been charged in similar cases. Officials also say that some of the places allegedly photographed by suspects in earlier investigations were later hit during Iranian missile attacks. 

The crackdown has also extended to cryptocurrency. Last year, Israel’s Ministry of Defense announced the seizure of about $1.5 million from 187 cryptocurrency wallets allegedly linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). Authorities said the wallets were believed to have been used to evade sanctions and finance terrorism.

According to prosecutors, Lavon’s case is believed to be the first involving an American citizen accused of taking part in this alleged espionage campaign while living in Israel.

Also Read: IMF Says Tokenization Could Reshape the Global Finance System

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Iyiola Adrian
By Iyiola Adrian
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Iyiola Adrian is a Crypto Analyst at The Crypto Times, based in Lagos, Nigeria. He covers daily cryptocurrency market developments, including Bitcoin and Ethereum price action, altcoin movements, on-chain trends, and fact-check reports on circulating market claims. His analysis emphasizes how African and emerging-market investor behavior interacts with global crypto flows. Before joining The Crypto Times, Iyiola was a contributor at CoinCodex, where he focused on long-form crypto analysis, project reviews, and biographical research on industry figures. He has been writing on digital asset markets continuously since 2022, and his expertise spans market research, chart pattern analysis, technical indicators, and fundamental valuation across the crypto sector. Iyiola holds a Bachelor's degree in Civil Engineering from the Federal University Oye-Ekiti, Nigeria, and is currently pursuing a Master's in Business Administration at Afe Babalola University, Nigeria.
Shubham Soni
By Shubham Soni
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Shubham Soni is the Editor at The Crypto Times, based in Ujjain, Madhya Pradesh. He oversees the editorial desk, reviewing daily news coverage of cryptocurrency markets, US and Indian regulation, institutional adoption, the Solana ecosystem, AI agents, and Real World Assets (RWAs). All policy and markets coverage at The Crypto Times passes through his desk before publication. Before joining The Crypto Times in October 2025, Shubham managed news desks at Sportskeeda and Opoyi, covering global politics, sports, and entertainment for high-volume newsrooms serving the US and Indian markets. His four years in fast-paced newsrooms shaped his approach to fact-checking, source verification, and structural editing on complex stories. Shubham holds a Master's degree in Journalism from Makhanlal Chaturvedi National University of Journalism and Communication (Bhopal) and a Bachelor's degree in Journalism from Amity University Rajasthan. 

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