Israel Extradites Alleged Crypto Thief to the U.S. Over $2.8M Theft

Overview

Israel has extradited Alexander Block, an Israeli-Russian citizen, to the United States to face charges related to the theft of approximately $2.8 million from the Nomad crypto bridge in 2022. This move follows a series of legal battles in Israel, culminating in the Supreme Court's decision to reject Block's appeal.

Details of the Case

Block, previously known as Alexander Gurevich, was taken into custody at Ben Gurion Airport in May 2025 while attempting to travel to Russia. He had recently changed his name and acquired a new passport. A federal grand jury in California indicted him in August 2023 on multiple charges, including computer fraud and money laundering, after the U.S. requested his extradition in December 2024.

The allegations stem from a software flaw in Nomad's smart contracts, which allowed users to transfer tokens without locking up the equivalent assets. Block reportedly exploited this vulnerability, executing six test transfers before completing four main transactions that netted him over $2.8 million. His actions inadvertently exposed the flaw to others, leading to the draining of more than $186 million from a Nomad wallet shortly after.

Legal Proceedings

In July 2025, the Jerusalem District Court approved Block's extradition. His defense argued that the transactions were within the capabilities of Nomad's system and pointed to the public nature of blockchain transfers to challenge the money laundering claims. However, the Supreme Court determined that exploiting a programming flaw could still be considered unlawful, regardless of the software's permissions. Furthermore, it ruled that visibility of transactions does not negate the possibility of disguising the source of funds.

Impact on Nomad

The exploit significantly impacted Nomad, which lost nearly all its funds due to the attack. Following the incident, the Federal Trade Commission proposed a settlement with Nomad's operator, Illusory Systems, to recover lost funds for users who had not been reimbursed. Nomad was able to recover about $22 million shortly after the breach.