Israel extradites Alexander Block, formerly Gurevich, to US over $2.89M Nomad bridge exploit

Israel extradited Alexander Block, an Israeli-Russian citizen who legally changed his name from Alexander Gurevich in April 2025, to the United States on October 29, 2026, to face eight federal charges over the alleged theft of $2.89 million from the Nomad blockchain bridge in August 2022.

Israel’s Supreme Court had ruled on March 8, 2026 that exploiting a software flaw could amount to unlawful computer intrusion even when the code technically permits the transaction.

Supreme court rejects Block’s smart contract defense

Block’s extradition battle focused heavily on whether exploiting an existing software vulnerability could legally constitute unauthorized computer intrusion.

Following his arrest at Ben-Gurion Airport in May 2025, Israeli authorities began extradition proceedings. The Jerusalem District Court approved the request on July 14, 2025, but Block challenged the decision before the country’s Supreme Court.

His legal team maintained that the transactions were executed through functions already available within Nomad’s smart contracts. They argued that he had not independently altered the underlying software or bypassed a conventional access restriction.

The defense also questioned whether the alleged activities satisfied Israel’s legal requirements for computer-related offenses. Its position was that using a function available to blockchain participants should not automatically be treated as unlawful system intrusion.

However, the Supreme Court rejected the central arguments in its March 8, 2026, judgment. Justice Ofer Grosskopf, writing for the three-judge panel, concluded that exploiting a programming vulnerability could constitute unlawful computer intrusion even when the software technically permits the transaction.

The court’s reasoning drew a distinction between what a computer program allows users to execute and what they are legally entitled to do. A technical weakness does not automatically make the resulting activity lawful.

This interpretation gives the crypto hack wider significance because it addresses a recurring legal question surrounding decentralized finance: whether exploiting a smart contract’s programming error can be treated as a criminal act rather than simply taking advantage of publicly accessible code.

Blockchain transparency does not eliminate money laundering charges

Another important aspect of the judgment concerned the defense’s challenge to the money laundering allegations.

Block argued that blockchain transactions are publicly recorded and can be examined by anyone with access to the relevant network. According to his defense, this transparency weakened the argument that he attempted to conceal the movement or origin of the assets.

However, the Supreme Court disagreed.

The judges emphasized that although blockchain transactions are visible, wallet addresses do not automatically reveal the identities of the individuals controlling them. Consequently, moving assets between multiple wallets and converting them into different cryptocurrencies can still complicate efforts to establish ownership and trace illicit proceeds.

The court therefore rejected the argument that public transaction records automatically prevent money laundering allegations from being established.

The decision is particularly relevant to cryptocurrency investigations, where investigators frequently rely on blockchain transaction records alongside other evidence to identify wallet controllers and establish connections between digital asset movements.

For the wider industry, the ruling reinforces an important distinction: blockchain transparency does not provide automatic legal protection to individuals accused of moving or disguising proceeds from alleged criminal activity.

US prosecution raises stakes for cross-border crypto enforcement

The US government formally requested Block’s extradition on December 10, 2024, following an indictment filed on August 16, 2023, in the Northern District of California.

The indictment contains eight counts: four related to computer fraud, one involving the transportation of stolen property, and three concerning money laundering.

After Israel’s Supreme Court rejected his appeal on March 8, 2026, the remaining legal challenge was also unsuccessful. Israeli authorities subsequently coordinated his transfer to American custody on October 29, 2026.

The US Department of Justice confirmed on October 30 that Gurevich, also known as Alexander Block, had appeared in federal court in California for his initial appearance.

The department identified the FBI as the investigating agency and acknowledged assistance from its Office of International Affairs and Israeli authorities. The cooperation demonstrates how cryptocurrency investigations can extend beyond national borders when alleged offenders, digital wallets and affected platforms are connected to different jurisdictions.

The financial penalties and potential prison sentences are also substantial. According to the Justice Department, the computer-related offense and interstate transportation of stolen money each carry maximum prison terms of 10 years, while money laundering carries a maximum sentence of 20 years. These are statutory maximums, not predictions of the sentence Block would receive if convicted.

The department also stressed an important legal safeguard, stating that an indictment is merely an allegation and that defendants remain presumed innocent until proven guilty beyond a reasonable doubt.