Israeli bank stole $320,000 in cryptocurrency profits from elderly woman

Israeli bank stole $320,000 in cryptocurrency profits from elderly woman

An Israeli pensioner is trying to get her $320,000 back, which was taken by one of the country's largest banks, through the courts.

In 2013, a 69-year-old Israeli woman purchased Bitcoin for 1,000 shekels ($3,240). Since then, her BTC has been sitting quietly in her wallet and growing in price.


After a 100-fold increase in the value of her investment, the pensioner decided to use the profit to buy an apartment for her son. She exchanged BTC and sent 100,000,000 shekels ($320,000) for a deposit in one of the largest banks in the country - Hapoalim Bank.


The bank blocked the funds, citing the fact that the woman used dirty money to buy BTC.


The funds did not return to the account of the crypto exchanger, but simply settled in the bank. Hapoalim attributed its actions to suspicions of the use of digital assets in criminal activity.

The characteristics of virtual currencies allow them to be transferred anonymously and without oversight, often bypassing the need to use financial factors that apply to the anti-money laundering and terrorist financing regime.

Esther had to hire a lawyer and go to court to defend the legitimacy of her profits. The court recognized that the source of money invested in Bitcoin is “known, clear and supported by references.”

So far, the bank is in no hurry to comply with the ruling. Its representatives stated that they would “study the case and give a response as normal.”

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