The Tax Authority – through the investigating tax officer of the central District, is conducting an investigation against Galah Luib, who is suspected of operating in a foreign virtual currency trading arena on a large scale, without reporting to the tax authorities. The total deposits of funds to the exchange were approximately NIS 23 million, a similar amount was withdrawn, and the total sales activity stands at approximately NIS 7 million.
From the covert investigation concerning him, it emerged that the suspect owns and uses two apartments in Kikar HaMedina in Tel Aviv, with a combined value of approximately NIS 13.5 million, as well as an additional penthouse apartment in Rishon LeZion. In addition, he owns luxury vehicles. The arrest request indicates that the suspect is only reported as an employee with income that does not match the aforementioned standard of living. In 2023 (the last reported year), the suspect was reported by his employer as an employee earning approximately NIS 240,000, and in previous years even less than that. This fact strengthens the suspicion of income concealment by the suspect.
It should be noted that the suspect has never opened a file with the Tax Authority, has not filed reports, and has not reported his virtual currency dealings, whereas according to the Income Tax Ordinance, he was obligated to do so and report virtual currency sales.
This morning, an overt investigation was opened against the suspect. A search was conducted at his home, and various documents and computer materials were found. In addition, virtual currency wallets, hundreds of thousands of NIS in cash, and diamonds with an initial estimated combined value of over $200,000 were also found in his home.
Today, the suspect was brought before the Magistrate’s Court in Bat Yam, and it was decided to release him under restrictive conditions. The investigation is ongoing.