Ashdod Resident Arrested for Failing to Report $13 Million in Crypto Income

Alexander Puchinsky, an Ashdod resident and staffing agency partner, has been arrested on suspicion of failing to report approximately $13 million in cryptocurrency trading income to the Tax Authority. The alleged offenses took place between 2019 and 2021, and authorities emphasize that these are preliminary suspicions rather than a criminal conviction.

The central piece of evidence stems from data obtained through the Binance crypto exchange. According to the Tax Authority, investigators secured identification documents linking Puchinsky to an account used for transactions totaling roughly $13 million, utilizing digital wallets allegedly under his control.

Investigators suspect that funds transferred from the exchange account were routed through multiple wallets owned by Puchinsky in an apparent attempt to obscure the money trail. During a subsequent home raid, authorities seized computing equipment and digital wallets, uncovering an additional wallet address upon inspecting the hardware. The investigation is being led by the Jerusalem and Southern Assessing Officer for Investigations, alongside the crypto department within the Tax Authority's intelligence headquarters.

This case highlights how tax investigators increasingly combine data from cryptocurrency exchanges with blockchain movement analysis to connect accounts and digital wallets to actual user identities. The investigation remains ongoing, the suspicions have not yet been adjudicated, and the Jerusalem Magistrate's Court has released the suspect under restrictive conditions.