Israeli lawyers sued for allegedly stealing 2,300 Bitcoins

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A lawsuit submitted past 7 days by Advs. Roy Blecher, Man Zeevi and Moshe Pekarevits from Krispin Rubinstein Blecher & Co. reveals an intriguingly extraordinary criminal offense, featuring no fewer than five Israeli attorneys.

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The lawsuit describes a situation involving significant-scale fraud, refined and systematic embezzlement and theft, in which Advs. Man Yuval and Uri Arad allegedly took gain of their consumer, who was himself attempting to escape from the European legal authorities, in a scenario in which he was suspected of allegedly swindling investors.

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In accordance to the client, although he was on the run, his legal professionals stole big sums of income from him, in the variety of bitcoin. 2,300 bitcoins value about €105 million have been allegedly stolen. This circumstance involves 3 other lawyers who labored with Advs. Yuval and Arad and a broker named Miki Hefetz, who was allegedly a lover in the conspiracy.

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The plaintiff is Jack Henry Wygodski, a rich Israeli and Belgian citizen, who has remained beneath the radar of the Israeli media.

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Wygodski entered into an arrangement with Hefetz and Advs. Yuval and Arad, according to which he would transfer to them bitcoins that would be converted by them into euros, immediately after which they would transfer to him the funds obtained from the conversion, right after deducting their fee.

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The lawsuit states that in light of the rely on he had in Hefetz and in Advs. Yuval and Arad, and believing that they would act correctly and in fantastic religion in line with the agreement involving the events, Wygodski despatched them in several transfers roughly 600 Bitcoins, and later transferred a further 1,700 Bitcoins.

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The promises says that Hefetz and Advs. Yuval and Arad misled him and offered him with wrong and deceitful representations, in accordance to which they would transform his Bitcoins and hold the cash been given from the conversion in have confidence in, until finally they would be transferred to him, when requested. In fact, it is claimed that, they handled the plaintiff’s Bitcoins and the money obtained subsequent their conversion, as their very own, allegedly stealing them from the plaintiff.

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Adhering to the settlement, the attorneys transferred the Bitcoins to accounts in Cyprus and Singapore with the purported goal of afterwards converting them into euros for Wygodski’s benefit. In March 2021, lawyers Advs. Yuval and Arad signed the “Assertion of Trustees” just before a notary, Adv. Haim Aharon, who was the founder and operator of the Yuval-Aharon legislation place of work, in which they stated that they maintain in belief the Bitcoins and Wygodski’s money, and that the cash ended up deposited in the bank account of Sabari-Yuval-Arad at the UBS financial institution in Switzerland and in an account in Cyprus.

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Arrest warrant in Germany

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But at a specified stage functions commenced to get difficult. About a month later on, in April 2021, a businessman named Avi Itzcovich was arrested in Bulgaria, at the request of the German authorities, on the suspicion that Itzkovich, Wygodski, and other individuals have been element house owners of investing platforms for investments in binary choices and virtual currencies, which allegedly defrauded German traders on these platforms.

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Wygodski, arrived under tension because of to the arrest of his small business husband or wife and owing to the point that an arrest warrant was also issued against him by the authorities in Germany. In accordance to the lawsuit, “Given the sense of stress and helplessness the plaintiff felt due to Itzcovich’s arrest, he rapidly turned to Advs. Yuval and Arad to consult with on how he need to act.” In accordance to the declare Advs. Yuval and Arad flew to Bulgaria and satisfied with the plaintiff various moments in Could and June 2021 in Sandanski. Adv. Man Yuval took a bodyguard to these meetings.

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According to Wygodski, Advs Yuval and Arad warned and threatened him that if he did not act as advised, he may well provide a extensive sentence in German prisons. Adv. Yuval instructed the plaintiff to sever ties with his good friends and family members, took his passport and Israeli ID card to damage them. Advs. Yuval and Arad instructed him to sever all get hold of with Adv. Moshe Strugano, who had represented him in all his non-public matters for a 10 years, professing that Adv. Strugano would rob him of all his dollars.

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The plot thickens. In accordance to the lawsuit, Advs. Yuval and Arad devised an escape strategy for Wygodski, which included smuggling him into Latin The us, where they declare they have in depth connections, and requested that all telephone calls among Wygodski and them should really be performed secretly, working with disposable cell phones, in which committed computer software would be set up to thwart adware that could pay attention into or history conversations. They also instructed him, in accordance to the claim, to right away disconnect from his email server and delete all his folders and documents situated in the cloud.

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Digital wallet in trust

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In accordance to the lawsuit, Wygodski would transfer to Hefetz and Advs. Yuval and Arad his electronic wallets with the all the Bitcoins in his possession and the wallet’s passwords. Hefetz and Advs. Yuval and Arad justified this by expressing that the transfer of his electronic wallets to them was needed to stop the Germany authorities from seizing the wallets as evidence.

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The broker and attorneys promised that they would faithfully continue to keep his electronic wallets and passwords and the Bitcoins within them, and that they would change some of the coins into euros. They also promised that just after the plaintiff settled in Latin The united states, underneath a wrong identity, delivered by the lawyers, Hefetz, Advs. Yuval and Arad would transfer to the plaintiff the Bitcoins held by them in believe in and all the cash from the conversion.

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Unlike the transfer of the 600 Bitcoins which was effectively documented, the transfer of 1,700 additional Bitcoins had no documentation. In accordance to the plaintiff, this was simply because he reliable them and because he was beneath enormous stress due to the arrest warrant issued in opposition to him in Germany, and he thus acted in accordance with their system.

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Advs. Yuval and Arad employed a third party to transfer phony passports to Wygodski, with which he left Bulgaria and entered Greece. Soon immediately after he traveled from Greece to Portugal with the similar fake passport. In Portugal, Wygodski lived in an apartment paid by Advs. Yuval and Arad. In the long run, Advs. Yuval and Arad required to transfer Wygodski to Latin America.

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When Wygodski remaining Bulgaria and started his escape to Greece and then to Portugal, Advs. Yuval and Arad refused to have immediate get hold of with him, proclaiming that they had been scared that the lawful authorities in Germany would keep track of them down. When Wygodski was in Greece and Portugal, the attorneys from time to time despatched an unknown messenger to him, to offer him with a cell phone so that he could discuss to them. Following the discussion, the messenger would get the mobile cell phone from Wygodski and disappear.

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According to the lawsuit, right after various months of residing underground and in financial distress, since he had no obtain to his resources, Wygodski questioned Advs. Yuval and Arad to transfer him the cash acquired from changing the Bitcoins to euros, and the Bitcoins that had been entrusted to them.

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The lawsuit states, “All the plaintiff’s inquiries had been overlooked. Advs. Yuval and Arad refused his requests and started to stay clear of the plaintiff’s inquiries to them, when threatening him that if he tried using to get in touch with them in buy to inquire for his revenue and Bitcoins back again, they would speak to the authorities in Germany and hand over his property and income to them.”

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The lawsuit further more reveals that after Wygodski suspected that he had fallen sufferer to fraud, he contacted Adv. Strugano in December 2021, shared with him his fears about a prolonged prison term in Germany, as Advs. Yuval and Arad experienced threatened him, and requested to obtain out the legal position of his business husband or wife Avi Itzcovich.

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Adv. Strugano reassured Wygodski, informed him that in his viewpoint the scenario in Germany was weak and could be concluded with a plea deal. He explained that the declare by Advs. Yuval and Arad that he could assume to provide a very long prison sentence in Germany was baseless, and that there was no issue in continuing his escape, and it would be far better if he turned himself in to the authorities in Germany.

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Following Wygodski agreed to switch himself more than to the German authorities, Adv. Strugano assumed illustration of Wygodski in extradition proceedings, and alongside one another with an additional German law firm who was employed, they contacted the prosecutor’s place of work in Germany and turned the plaintiff over to the authorities there in February 2022 .

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Right now, Wygodski is being held in custody in a correctional facility in Germany, and his German lawyer is negotiating with the prosecuting authorities to kind a plea bargain offer, in which most of the fees in opposition to the plaintiff would be dropped, and the traders would be economically compensated.

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“False and unattractive smear marketing campaign”

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The drama does not stop there. In accordance to the lawsuit, thanks to Adv. Strugano’s need to thwart Adv. Yuval and Arad’s allegedly criminal approach to get their palms on Wygodski’s revenue, they went out of their way to discredit Adv. Strugano in the eyes of Wygodski. “Following the plaintiff severed his ties with Advs. Yuval and Arad, they devised a malicious program to hurt Adv. Strugano as very well and started a phony and unsightly slander campaign from him, for the duration of which they released fictitious posts in which Adv. Strugano was accused of allegedly supporting the plaintiff escape from the authorities and who was an accomplice of the plaintiff in conducting frauds in fx trading executed worldwide.”

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The lawsuit also claims that Advs. Yuval and Arad employed the expert services of cyber corporations, by way of which they established up internet sites exactly where false and deceptive info about Adv. Strugano was posted, which integrated his title, photograph, and individual details. They also opened fictitious social media network accounts in the title Adv. Strugano.

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Wygodski is now in custody in Germany on suspicion of defrauding traders. He is requesting, by means of Advs. Blecher and Zeevi, to get back again the €100 million that he statements was stolen from him for the duration of his endeavor to evade the investigation for the fraud in which he himself is suspected.

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“Fictional intimidation lawsuit”

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“Globes” was not able to receive a response from the defendants Advs. Man Yuval and Uri Arad. Their business mentioned that they had been abroad indefinitely, and that there was no way to get in touch with them when they have been overseas. However, soon after a short time, Adv. Man Yuval identified as back and asked to give his reaction to the posting, and even agreed to satisfy in Tel Aviv. When asked how he could satisfy in Tel Aviv, whilst his firm explained that he was abroad indefinitely, and that there is no way to get in contact with him – Adv Yuval replied: “In all probability a misunderstanding, only Uri is overseas.”

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On the situation, Adv. Yuval reported, “This is a fictional intimidation lawsuit, filed by Jack Wygodski, a crook and international prison who swindled thousands of innocent victims out of hundreds of millions of euros.

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“Wygodski is at this time accused in Germany of working a prison organization and innovative big-scale transcontinental fraud. Wygodzki is in custody until finally the stop of the proceedings, and felony and civil lawsuits are currently being introduced in opposition to him and his associates in criminal offense, most of whom are Israelis around the entire world.

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“He approached us in purchase to get financial expert services and introduced himself as an international businessman. Following various months it became distinct to us that he belongs to a prison corporation, and that his funds are funds that had been stolen in a forex scam.

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“When we claimed, at the ask for of the Germany authorities, who are functioning against him, about his large quantity of revenue held in a lender account in Singapore, which he tried out to conceal from the 1000’s of victims he defrauded, he built out we have been his enemies and persecuted us in just about every doable way, in order to protect against us from cooperating with the authorities.

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“For this goal, Wygodski even despatched criminals to our house in the middle of the night time, and to our agency for the duration of business hrs, in buy to discourage us from cooperating in the criminal and civil proceedings in opposition to him in Germany. These criminals ended up filmed and photographed and even arrested by the law enforcement, right after we filed problems.

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“Following the intimidation by the criminals unsuccessful, Wygodski moved to the subsequent stage, which is an endeavor to discredit us or delegitimize us, with a lawsuit that is totally an act of fraud, which of program will be rejected. We will not be deterred and will carry on to cooperate with the authorities in Germany so that he pays for his actions towards the countless numbers of victims”.

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Defendant Miki Hefetz claimed in response: “I have not obtained the lawsuit still. It’s all nonsense, it truly is all produced up. Don’t think every little thing you hear.”

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All people associated in the aforementioned case have not been convicted of committing the crimes attributed to them and have the right to be presumed harmless.

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Printed by Globes, Israel company information – en.globes.co.il – on October 7, 2022.

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© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

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