In an interview on the state run IRNA news agency, Intelligence Minister Heidar Moslehi said the foundation, which offers cash rewards for information concerning Israeli soldiers missing in action, including Israeli air force navigator Ron Arad, is run by the Israeli Mossad intelligence service, which wants to recruit spies.
"The Zionist regime (Israel) seeks to use the site to identify and cooperate with individuals from different countries as spies in order to monitor different measures taken by Muslim countries," Moslehi said.
Arad disappeared in 1986 when his plane was shot down over Lebanon.
Moslehi said his ministry arrested a number of Iranians who were connected with the site, Press TV reported.
The Born To Freedom Foundation was established in Israel to assist the families of missing Israeli soldiers secure information on their whereabouts. The foundation offers cash rewards in exchange for information on missing Israeli soldiers. The foundation's Web site operates a 24-hour call center and receives calls in numerous languages, including Arabic, Persian and English.