Israeli Arrested in Rome Over €50M Forex Scam

Interpol Arrests Israeli Man Linked to Large-Scale Forex and Cryptocurrency Scam

An Israeli national was arrested at Romes Leonardo da Vinci Airport this week after Interpol issued an international warrant accusing him of involvement in a €50 million forex and cryptocurrency scam that defrauded hundreds of investors across Europe.

The suspect, reportedly in his mid-30s, was detained by Italian border police during a routine passport check. Italian authorities acted swiftly after confirming the active Interpol notice requested by Germany, which has been probing a network of fraudulent online trading schemes targeting retail investors.

Israeli outlet Mako, citing sources familiar with the case, reported that the suspect had been traveling for a combination of business meetings and personal leisure when detained. He was allegedly unaware that law enforcement agencies across Europe had been searching for him for months.

German Investigators Track Widening Forex Fraud Network

According to investigators in Germany, the scam spread through fake investment platforms promising high returns from trading in forex and cryptocurrencies. These platforms were specifically marketed to German citizens but also drew victims in Austria and Switzerland.

A source close to the investigation suggested the detained man worked for a major Israeli company headquartered in Cyprus — a jurisdiction known for housing a number of online trading firms. The companys operations reportedly span several EU markets, particularly those most affected by the alleged fraud.

German and Italian authorities have intensified their cooperation under Eurojust and Interpol to map the financial flows linked to the operation. Investigators are tracing cross-border transactions and online advertising campaigns that lured victims with aggressive marketing and supposedly “risk-free” investment opportunities.

Experts say the case highlights a recurring challenge in Europes digital investment landscape — a proliferation of unregulated platforms offering contracts for difference (CFDs) and crypto products to unsophisticated traders. The growing appetite among younger investors for high-yield trading has made enforcement even more complicated.

In recent reports, Italian retail investors have also shown an increasing appetite for forex and CFD trading, although many remain exposed to offshore brokers and potential scams. The Israeli suspects detention could therefore spark renewed regulatory scrutiny of cross-border trading platforms operating within the bloc.

Court in Rome Bars Travel as Extradition Process Begins

The detained man appeared before a Rome court earlier this week. His defense attorneys, Sagiv and Nir Rotenberg, well known for their work in transnational extradition cases, argued successfully for his release under house arrest while proceedings continue. The court granted the motion on condition that he surrender his travel documents and remain within Italy until a decision on Germanys extradition request is finalized.

Legal analysts say Germanys request could trigger a lengthy process, depending on how Italian authorities interpret dual criminality provisions under European extradition treaties. If extradited, the accused would likely face fraud and money laundering charges under German penal law.

Meanwhile, investigators anticipate that the case could lead to a broader crackdown on similar online investment operations, particularly those linked to companies registered in Cyprus and Eastern Europe. German police have not ruled out further arrests among executives who may have facilitated or profited from the scheme.

Interpol confirmed its continued assistance to both countries in tracing additional suspects and assets connected to the case. The European Union‘s financial intelligence units are also expected to review suspicious transaction reports related to the company’s operations.

Crackdown Expands Across Europe and Beyond

The case forms part of a wider pattern of enforcement actions targeting international forex and cryptocurrency fraud networks. Earlier this year, Philippine authorities arrested two Israelis and seven Filipinos in Angeles City for operating an illegal online trading scheme. Agents from the Bureau of Immigrations Fugitive Search Unit discovered the group running a call center operation that marketed fabricated mentorship and investment programs to foreign victims.

That incident mirrors the playbook seen in the current European case — firms using the guise of investor education or trading mentorship to gain trust before funneling clients into fraudulent investment systems.

Across Europe, regulators are urging investors to verify licensing credentials and steer clear of unregulated trading offers promising outsized profits. Market watchdogs in Germany, Italy, and Austria continue to issue warnings about unauthorized forex and crypto operators exploiting digital marketing and messaging platforms to reach new audiences.

Analysts say the incident underscores a recurring risk in the booming retail trading arena: fast-evolving technology outpacing investor protection. For authorities, the arrest in Rome is not just about one suspect — it represents a chance to expose a vast, multi-jurisdictional fraud ecosystem built on the promise of easy crypto and forex gains.