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Israel's Espionage Activities Highlight the Role of Crypto in Modern Warfare

A recent $90 million hack at Iran's Nobitex cryptocurrency exchange has been linked to state-sponsored espionage by pro-Israel actors.

Investigations by TRM Labs suggest that the culprits siphoned funds and might have accessed sensitive data to identify Iranian spies compensated with cryptocurrencies.

Days after the exploit, Israeli authorities arrested three citizens for allegedly conducting espionage in exchange for digital assets.

The report outlines a rare instance of espionage documented with cryptocurrency involvement, as operatives received payouts for specific tasks using anonymized blockchain channels.

One of the suspects, Dmitri Cohen, reportedly tracked family members of Israeli Prime Minister Benjamin Netanyahu, while another was caught photographing military sites.

The arrested individuals allegedly maintained encrypted communications with Iranian handlers and received payments for their covert activities.

Though Israeli officials have not publicly confirmed a direct connection between the Nobitex hack and ongoing espionage, the timeline raises suspicions of coordinated intelligence operations.

Pro-Israel hacker group Gonjeshke Darande has claimed responsibility for the Nobitex breach, asserting they not only stole funds but also exposed the platform's entire source code.

This incident underscores the growing significance of cryptocurrency in funding covert operations globally, particularly by nations like Iran that leverage it to circumvent sanctions.

As the lines between digital currency and espionage increasingly blur, analysts suggest that understanding this evolution may be crucial for both national security and economic strategies.