American Charged in Israel for Spying for Iran Paid in Cryptocurrency

Eli Lavon, a 21-year-old American citizen studying at an ultra-Orthodox seminary in Jerusalem, has been indicted on charges of espionage, marking the first case involving a U.S. national amid increasing prosecutions related to Iranian espionage activities in Israel. Prosecutors allege that Lavon was recruited through a job posting on the messaging app Telegram while visiting the United States in November 2025.

Upon returning to Israel, Lavon allegedly began receiving instructions from an individual claiming to represent Iranian intelligence. His tasks reportedly involved filming an abandoned building and recording footage inside a grocery store in a religious area of Jerusalem. Prosecutors detail one incident where Lavon was instructed to hide a cigarette pack containing a coded note in a shopping mall's trash can marked "The job is complete." His exchanges included payments totaling approximately $1,379 in cryptocurrency, sent via two Telegram accounts using three different phones.

After ceasing contact with the first handler, Lavon established communication with a second handler linked to Iran, wherein he allegedly concealed a flash drive wrapped in currency at a restaurant. This handler reportedly pressured Lavon to provide names of his fellow students, which he refused.

The indictment raises concerns over how foreign intelligence agencies leverage digital platforms to recruit and operate individuals within Israel. Prosecutors emphasize the modern challenges of espionage in a digital age, noting that this incident highlights the vulnerabilities that emerge when individuals can be easily contacted and compensated through digital currencies.