The money was initially frozen by the Israeli authorities after they became suspicious about transactions on accounts held by Ronald and Darren Bobroff, National Prosecuting Authority (NPA) spokesperson Luvuyo Mfaku said in a statement.
The two are accused of entering into multiple fee agreements with their clients through their legal firm Ronald Bobroff amp;amp; Partners.
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"The clients were unaware that these agreements were in actual fact null and void and that it was used as a tool by the Bobroffs to commit alleged fraud, theft and tax evasion," Mfaku said.
A North Gauteng High Court order was granted on July 28 in terms of the Prevention of Organised Crime Act, which provides that property that is used to commit a crime can be frozen.
In court papers, the AFU submitted evidence that the funds in the bank accounts were laundered money, Mfaku said.
He added that in addition to money laundering, the Bobroffs are accused of investing a substantial amount of Ronald Bobroff amp;amp; Partners's money to avoid taxation.
Read: NPA head concerned over Bobroff evading justice
Ronald and Darren fled South Africa in March 2016 for Australia after the irregularities were uncovered, the NPA said.
It's unclear whether extradition negotiations are underway.
The money is currently kept safe in Israel until the finalisation of forfeiture proceedings.