An American is accused in Israel of spying for Iran in exchange for cryptocurrencies

An American citizen who teaches at an ultra-Orthodox religious seminary in Jerusalem has been indicted on espionage charges, in what authorities say is the first trial of an American citizen amid a widespread crackdown on Israelis recruited to spy for Iran.

Eli Lafon, 21, was formally charged on Friday with two counts of communicating with a foreign agent and 14 counts of communicating information that could benefit the enemy, according to an indictment filed by the state attorney general’s office, according to the British newspaper “Daily Mail”. CNN.

Prosecutors allege the case began in November 2025, when Lavon, while visiting relatives in the United States, responded to a job advertisement on the messaging app Telegram. A month later, while he was returning to Israel, a person claiming to represent Iranian intelligence contacted him and began directing him to carry out surveillance duties, the indictment states.

These tasks allegedly included photographing an abandoned building in a religious neighborhood in Jerusalem and recording footage inside a grocery store. Prosecutors say that in one case, Lavon was asked to hide a cigarette pack containing a note reading “Mission Complete” in a trash can at a Jerusalem mall.

He was paid in cryptocurrency for materials he provided and communicated through two Telegram accounts and three phones, according to the charges.

After cutting off that contact, prosecutors say Lafon began communicating with a second official linked to Iran, hiding a flash drive wrapped in currency in a restaurant and sending a photo of his passport. That therapist pressured him to obtain the names of fellow students at the seminary, which Lavon refused to provide, the indictment states. Prosecutors say the total payments he received from both therapists amounted to about $1,379.

“This indictment demonstrates how foreign intelligence agencies are trying to exploit the digital sphere to identify, recruit and employ individuals from within Israel, and how important it is to remain vigilant and immediately disconnect when contacted in this way,” said Ronit Schnitzer Yacobi of the Jerusalem District Attorney’s Office.

Raz Bar Zvi, Lavon’s lawyer, said: CNN That online communication by a foreign actor does not make someone a spy, he said, and the facts described in the indictment do not support the charges. He declined to say how his client would plead.

Israel has indicted about 60 people on espionage charges related to Iran since 2023; Officials say many of the sites these recruits allegedly monitored were later bombed in Iranian missile attacks.