During the war between the Ottomans and the Republic of Venice, Nasi's negotiations with the Jewish community in Venetian-ruled Cyprus were uncovered, and, as a result, the Jewish population of Famagusta (with the exception of Jews who were natives of the city) was expelled in June, 1568 ("see History of the Jews in Cyprus"). It is believed that he intended parts of Cyprus to be a Jewish colony and encouraged the Ottoman annexation of Cyprus in the war to that end; he was granted a coat of arms by Selim that indicated he would be given viceregal rank in that colony. Nasi's relative Abraham Benveniste ("Righetto Marrano") was arrested in 1570, on charges of having set fire to the Venetian Arsenal on Nasi's instigation.