An Israeli national who helped move more than $10 million stolen from Australian investors has been found guilty in a Sydney court, after a 13‑week trial that exposed the inner workings of a sprawling international scam operation.
Shabtay Yaacoby, a director and shareholder of the cryptocurrency platform Blue Star Exchange, was convicted of dealing with the proceeds of general crime after jurors deliberated for just over four hours. The case hinged on a ledger of more than 1,000 “clients” found on his laptop a document prosecutors said mapped out the flow of stolen funds from victims to scammers and then through Yaacoby’s crypto channels.
Investigators also uncovered Telegram conversations between Yaacoby and several scammers, identified only by pseudonyms. In one recorded call, he could be heard in Hebrew berating a prolific scammer: “Why haven’t you started bringing in money?” He went on to call the man “dumb” and instructed him on how to pressure Australian targets.
Yaacoby was arrested in Sydney in November 2023 while attempting to unfreeze bank accounts linked to his business. He did not apply for bail and will be sentenced on May 22.
Victims told the court they were lured by online ads for investment opportunities often featuring fake celebrity endorsements that led to convincing brokerage websites. After entering their details, they were contacted by scammers posing as account managers who spent weeks building trust. The platforms displayed fabricated profit dashboards and trading charts, giving victims the illusion their money was growing.
But the funds had already vanished. Prosecutors said the money was swiftly converted into cryptocurrency and sent offshore through Blue Star Exchange and other entities linked to Yaacoby. One New South Wales man lost about $4 million from his and his wife’s superannuation, believing he was investing in a high‑interest term deposit.
In total, 39 victims testified. While Yaacoby had no direct contact with them and did not participate in the fraud itself, the jury found he knowingly worked with the scammers to launder their proceeds.
His lawyer, David Dalton SC, argued that Yaacoby was “running a legitimate business” and did not know the funds were stolen. He conceded his client had been “pushing boundaries,” but said it was done to keep the company afloat not to facilitate crime. The jury disagreed.
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