Israel to Spend $2.2 Million on Bitcoin and Ethereum to Replace Missing Digital Wallet

In an unprecedented move, the Israeli government has announced that it will purchase 19.15 Bitcoin and 83 Ethereum, collectively valued at over $2.2 million, to replace a digital wallet that went missing while in police custody. The wallet, which originally belonged to Shai Siboni, a convicted gambling offender and former professional football player, contained cryptocurrency assets that have since appreciated significantly in value.

The wallet was seized by law enforcement during Siboni's detention over two years ago. Initially valued at around one million shekels, the digital assets within the wallet have since increased substantially in worth. The disappearance of the wallet has sparked controversy and raised concerns about the handling of evidence by law enforcement. According to a senior source, the negligence occurred within the Lahav 433 Unit, Israel’s elite financial crimes division, and no officials have taken responsibility for the loss.

The incident has been classified as a major procedural failure, with the state now facing a significant financial burden to replace the lost cryptocurrency at its current value. The decision to reimburse Siboni with current-value cryptocurrency follows legal and procedural guidelines, as the state is responsible for property under its custody, regardless of the owner’s criminal history. The compensation will be made using government funds, aligning with the principles of asset protection during detention.

Siboni's legal troubles are not new; he was identified as a central figure in illegal gambling operations during the 2014 and 2018 FIFA World Cups. Investigations revealed that he operated unauthorized betting platforms, allegedly earning over 100 million shekels. However, due to limited evidence directly linking his assets to illegal activity, most of his property was returned. Despite public reactions, officials have maintained that the replacement of the lost wallet is a legal necessity, effectively turning Siboni into an extremely wealthy individual as the legal proceedings around his gambling operations continue.