Israel will buy 19.15 BTC and 83 ETH to replace a wallet lost while in police custody.
Shai Siboni, a convicted gambling offender, will receive crypto now worth over $2.2 million.
The wallet was lost under the Lahav 433 Unit's oversight, and no officials have taken responsibility.
In a move drawing national attention, the Israeli government will purchase 19.15 Bitcoin and 83 Ethereum, worth over $2.2 million, to replace a missing digital wallet once belonging to Shai Siboni. Siboni, a former professional football player and convicted gambling offender, lost access to his crypto assets while in police custody over two years ago. According to a local report, authorities confirmed the state will now fund a new wallet with an equivalent amount of cryptocurrency.
Wallet Disappearance Sparks Controversy
While detained during a criminal investigation, Siboni’s original wallet was seized by law enforcement. The crypto was initially valued at around one million shekels. However, during the time it went missing, the digital assets appreciated substantially.
A police official confirmed the wallet disappeared under unknown circumstances during an internal transfer. The case has since raised concern over how evidence was handled. According to a senior source, the negligence occurred within the Lahav 433 Unit, Israel’s elite financial crimes division.
No officials have accepted responsibility for the loss, though the repercussions remain costly. The same source confirmed that replacing the crypto at today’s value would place a significant financial burden on the state. The incident has now been classified as a major procedural failure.
Background on Shai Siboni
Siboni is not new to legal troubles. Authorities identified him as a central figure in illegal gambling operations during the 2014 and 2018 FIFA World Cups. Investigations revealed he operated unauthorized betting platforms, allegedly earning over 100 million shekels. The income funded the purchase of several assets, including high-end vehicles and real estate. However, due to limited evidence directly linking his assets to illegal activity, most of his property was returned.
The decision to reimburse Siboni with current-value cryptocurrency follows legal and procedural guidelines. Police confirmed that the state is responsible for property under its custody, regardless of the owner's criminal history. Since the wallet was lost after being confiscated by law enforcement, the government must restore its contents.
State to Fund Wallet with Public Resources
The compensation will be made using government funds. A source close to the case stated that the decision aligns with the principles of asset protection during detention. Despite public reactions, officials maintained that the replacement of the lost wallet is a legal necessity.
The state’s reimbursement effectively turns Siboni into an extremely wealthy individual. While the legal proceedings around his gambling operations continue, he will receive a new wallet holding millions in digital currency. No official disciplinary action against police officers has been announced.
