Key Highlights
- Israeli authorities arrested Adiel Miyost, 43, over alleged tax evasion, money laundering and conspiracy to commit a crime involving cryptocurrency trading.
- Investigators allege that Miyost traded crypto on multiple exchanges without reporting the activity or related income to the Tax Authority.
- Authorities also suspect he held undeclared bank accounts abroad and used another person’s bank account to conceal funds.
Israeli authorities have arrested a 43-year-old cryptocurrency trader over allegations that he concealed crypto trading activity and income from tax authorities in a suspected multimillion-dollar tax-evasion scheme.
According to an October 6 report by CTech, the investigation was conducted jointly by the Israel Tax Authority and Israel Police. The suspect, identified as Adiel Miyost, was arrested on suspicion of tax evasion, money laundering and conspiracy to commit an offense.
Authorities allege that Miyost traded cryptocurrencies through several exchanges without reporting the activity to the Tax Authority and omitted related income from his personal tax returns.
Authorities allege undeclared crypto income
According to investigation materials from the Tax Authority’s Haifa Assessing Officer for Investigations and the Economic Enforcement Unit of the Coastal District, part of the Lahav 433 division, authorities allege that the income generated from the trading was not declared for tax purposes.
The investigation also includes allegations of money laundering and other financial offenses. Authorities told the court that Miyost was suspected of carrying out large-scale financial and technological operations, potentially with others, while concealing the activity and income from tax authorities.
Israel requires reporting of crypto activity
The Israel Tax Authority treats virtual currencies as reportable assets and provides specific procedures for taxpayers who have earned profits from cryptocurrency sales.
The authority’s guidance says individuals who realize profits from the sale of virtual currencies can report the activity and pay the applicable tax. It also provides a process for taxpayers whose Israeli banks have refused to accept tax payments originating from cryptocurrency proceeds.
The Tax Authority separately lists virtual currencies among assets that must be reported when sold under the capital-gains reporting framework.
These rules provide context for the tax-reporting allegations in the Miyost case, but they do not establish whether the specific allegations against him are valid.
Investigators suspect use of foreign accounts
Investigators also suspect that Miyost held undeclared bank accounts abroad.
Authorities further allege that he used another person’s bank account to conceal his activities and funds generated from cryptocurrency trading.
Police and the Israel Tax Authority said searches carried out during the investigation resulted in the seizure of “significant sums of foreign currency” and a luxury vehicle.
According to the authorities, the vehicle was registered in another person’s name, which they suspect was intended to conceal the suspect’s assets.
Court extends Miyost’s detention
Authorities asked the Haifa Magistrate’s Court to extend Miyost’s detention by seven days.
The prosecution and Miyost’s lawyers, Uri Goldman and Sheila Dorfman, agreed during the hearing to extend his detention until Sunday.
Judge Michal Davidi, deputy president of the Haifa Magistrate’s Court, subsequently ordered Miyost’s detention to be extended until October 11, 2026.
The judge said the investigation file showed reasonable suspicion and grounds for remand.
Lawyers reject money-laundering allegations
Miyost’s lawyers rejected the allegations against their client.
“This matter belongs in the civil legal arena,” Dorfman and Goldman said in a statement, according to CTech.
They added that the police allegations involving money laundering and large sums of money were “far removed from reality.”
The lawyers said they were confident that further examination of the allegations would show that there was no substance to the claims.
They also criticized the timing of the arrest, arguing that it came more than five years after the alleged offenses.“The suspect’s arrest at this time, more than five years after the alleged offenses took place, is deeply regrettable,” the lawyers said.
Recent crypto-related cases in Israel
The case follows two earlier Crypto Times reports involving cryptocurrency-related allegations in Israel.
In March 2026, The Crypto Times reported that Polymarket bettors allegedly attempted to extort an Israeli journalist over his war reporting. The report said the alleged harassment intensified after attempts involving bribery and manipulation failed, with the journalist subsequently facing threats to his life and safety.
In July 2026, Israeli prosecutors charged a U.S. student in an alleged Iran-related crypto spy plot. Prosecutors alleged that the student carried out surveillance missions and received more than $1,379 in cryptocurrency payments.
The two earlier cases involved different allegations and circumstances and are not reported to be connected to the Miyost investigation.
The authorities have not announced any conviction or final determination against Miyost. The investigation remains ongoing, while the court has extended his detention through October 11, 2026.
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