DAY 412 OF THE WAR: ICC Issues Arrest Warrants for Netanyahu and Gallant, Israeli Killed in Nahariya by Rocket Strike, Soldier Killed In Gaza, Herzog Speaks Out

Tel Aviv Diary, November 21, 2024

Late tonight, it was announced that First Sergeant Ron Epshtein (19) fell in combat today in Northern Gaza.

Today, the International Criminal Court (ICC) issued arrest warrants for Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant, accusing them of committing war crimes. This decision could have grave consequences for Israel, potentially leading to further international isolation. It might compel some countries to sever or diminish their cooperation with Israel. The typical response in Israel has been to condemn the ICC's actions as antisemitic, and there are grounds for this perspective. The ICC has overlooked more severe atrocities in other regions and there are serious legal concerns regarding its jurisdiction, particularly as Israel has not ratified the Rome Statute that founded the court. Nevertheless, the ICC has decided not to address the issue of jurisdiction.

The ICC prosecutor first requested the arrest warrants in May, six months ago. Whether or not these were justified, there was ample time to implement preventative measures. Options could have included striving to end the war sooner, establishing a National Commission of Inquiry, or making significant improvements to the distribution of humanitarian situation in Gaza. Despite the Attorney General's repeated warnings to set up an independent commission of inquiry to potentially deter the warrants, no action was taken. Israeli experts in international law believe that the principle of self-review, exemplified by Israel’s justice system’s ability to independently assess the actions of government officials and the military, could have significantly reduced the likelihood of the ICC deciding to issue warrants in this case.

The Israeli government has disregarded repeated suggestions to establish a National Commission of Inquiry, primarily because Prime Minister Netanyahu opposes the creation of any commission that would scrutinize his actions. Moreover, this refusal reflects a troubling mindset held by some in Israel—that the world is against us regardless of our actions—leading to a sense of futility about making efforts to change perceptions. While there may be some truth to this belief, Israelis are “blissfully” unaware of the images and narratives that dominate global perceptions of the war. In Israel, we are acutely aware of our own losses, the funerals of our soldiers, and the heart-wrenching plight of our hostages. However, the world primarily sees the devastating images from Gaza, which fuel criticism of our actions.

Conversely, our enemies and their supporters often distort and manipulate facts to present an exaggerated portrayal of the situation in Gaza. For instance, Senator Bernie Sanders recently circulated an image of a child with a medical condition, using it to claim that children are starving in Gaza. Despite repeated warnings about imminent mass starvation among children, these claims have not been substantiated in reality.

While there have been press releases boasting about the establishment of field hospitals in Gaza, no concrete evidence, such as operational images, have been provided to either the Israeli public or the international community. This failure to demonstrate tangible humanitarian efforts has only fueled global skepticism.

Where do we stand now? The White House strongly condemned the ICC’s decision, issuing the following statement:

The U.S. fundamentally rejects the Court’s decision to issue arrest warrants for senior Israeli officials. We remain deeply concerned by the Prosecutor's rush to seek arrest warrants, and the troubling process errors that led to this decision. The United States has been clear that the ICC does not have jurisdiction over this matter. In coordination with partners, including Israel, we are discussing next steps.

However, rejection of the ICC’s decision to indict by a close ally like the United States does not erase the damage already done. This moment serves as a sobering reminder of the importance of both global optics and proactive measures. Whether the accusations are valid or not, the ICC’s actions highlight a failure to anticipate and address growing international concerns, leaving Israel in an increasingly precarious position.

The issuance of the arrest warrants for Prime Minister Netanyahu and Defense Minister Gallant represents yet another avoidable disaster. The actions taken by Israel in Gaza, while undoubtedly complex and fraught with the inherent devastations of war, highlight one of our gravest oversights: failing to acknowledge that we are as much engaged in an information war as a kinetic one. Losing the information war carries tangible and far-reaching consequences, and I fear that beyond Netanyahu and Gallant, many others will pay the price for this failure.

TRAGEDY UNDER INVESTIGATION

This morning, authorities released the identity of the soldier who died alongside Major (res.) Ze’ev Hanoch “Jabo” Erlich. Sergeant Gur Kehati (20), from Nir Banim, tragically lost his life in the incident.

Investigators are now scrutinizing the decision to deploy a 71-year-old historian to an active battlefield, a move that resulted in the deaths of Erlich and Kehati, as well as the wounding of two other soldiers at the archaeological site.

IN THE NORTH

Today, multiple rocket barrages targeted the North, including two specifically aimed at Nahariya. Tragically, one of these attacks claimed the life of Braen Direktor, a 27-year-old truck driver from Ma’alot. Direktor was killed after leaving his truck to find cover.

Meanwhile, US envoy Amos Hochstein, spent the day in Israel discussing potential resolutions with Israeli leaders, though a final agreement has not yet been reached.

THE DOCUMENT CASE

In a separate development, the prosecutor’s office filed an indictment against Eli Feldstein today on the grave charge of transferring classified information with the intent to harm Israeli security. This crime could carry a life sentence. Additionally, an unnamed Army NCO faces charges of sharing classified information, which could result in a 15-year prison term. According to the charges, others within Netanyahu’s office may have also been involved, though it remains unclear whether Prime Minister Netanyahu himself played a role.

THE UN AND THE US

Two significant events unfolded in the United States yesterday. The first involved a UN Security Council resolution calling for an immediate ceasefire in Gaza, but notably excluded any mention of Hamas or the hostages. Despite this omission, all Security Council members, including several of Israel’s traditional allies, voted in favor of the resolution. The United States, however, cast the sole dissenting vote, effectively vetoing the measure.

The second incident was a Senate vote to block arms sales to Israel, spearheaded by Senator Bernie Sanders and supported by 20 Democratic senators. This development is troubling. One contributing factor was J Street’s decision to support Sanders’ resolution. J Street, which presents itself as a pro-Israel organization that often critiques Israeli policies, crossed a significant boundary by backing a measure that would halt critical arms supplies. Although Israel does not need these arms for the current conflict, they are vital for maintaining readiness against future threats. By endorsing this resolution, J Street has shifted from offering constructive criticism to adopting a stance that undermines Israel’s security preparedness.

HERZOG SPEAKS OUT, FINALLY

Over the past few weeks, the government has been engaged in coordinated efforts to reintroduce judicial reform and attack the State’s Attorney General. President Herzog has faced criticism for his silence on these developments. Today, Herzog broke his silence

:

I wish to address several current events that deeply concern me. We are in the midst of a war. We have paid the price of thousands murdered and wounded. We have lost over 800 beloved heroic soldiers. Our brothers and sisters are still held hostage in Gaza. Tens of thousands of civilians are displaced from their homes.

And meanwhile, what is happening? Disgraceful and humiliating treatment of the families of the hostages. Accusations of treason and attempted coups against the head of the Shin Bet and the Chief of Staff, accusations against the Attorney General that she is an enemy of the state sent to destroy us, and constant threats of dismissal. Flares fired at the Prime Minister’s residence, and repeated accusations of treason against him.

What on earth is happening to us?! Is this logical?! Haven’t we suffered enough?! Haven’t we realized that this undermines the security of the state?! Haven’t we understood that this is how a state is dismantled?!

The physical and verbal violence—against the Attorney General, against the head of the Shin Bet, against the Chief of Staff, against the Prime Minister—is simply horrifying. Accusations of treason, threats of dismissal, incitement to bloodshed. What is this?! It’s complete madness. It’s insanity that must be stopped.

There are those who sacrifice themselves for the sake of the state, paying with their lives every day. And there are those who are destroying the state, and I vow to fight them with all my might.

I warn you: you are destroying the state. This madness must stop now.

BUSINESS

Prompt Security

Prompt Security's successful $18 million Series-A funding round marks a significant milestone in addressing the critical intersection of AI and cybersecurity. Led by Jump Capital, with participation from existing investor Hetz Ventures doubling down on their previous investment, the round also attracted new investors including Ridge Ventures, Okta, and F5. This impressive raise, coming just 10 months after their seed round, brings their total funding to $23 million and validates the urgent market need for comprehensive GenAI security solutions

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Founded by Israeli intelligence Unit 8200 veterans Itamar Golan and Lior Drayem in August 2023, Prompt Security has quickly established itself as a leader in GenAI security. Their platform's innovative approach examines every interaction between AI tools and organizations, from employee-facing applications to internal systems, effectively monitoring prompts and responses to prevent data exposure and mitigate AI-specific threats. The company's rapid success is evidenced by their impressive client roster, including Royal Caribbean, Riskified, and St. Joseph's Healthcare, with revenue quintupling since their January launch. As enterprises increasingly adopt GenAI technologies, Prompt Security's solution addresses a critical market need, positioning them at the forefront of securing the future of AI implementation in business environments.

Bank Mizrachi

Mizrahi Bank has released its financial report for the third quarter of 2024, revealing a net profit of 1.42 billion shekels, an increase of approximately 30% compared to the same quarter last year.

The profit reflects a return on equity of 19.0%. Mizrahi Bank (+0.88% 16,040) will distribute a dividend of 570 million shekels, which represents 40% of the third quarter’s profits.

Converge Bio

A promising biotech startup, Converge Bio, has secured $5.5 million in seed funding led by TLV Partners, marking a significant milestone in their mission to revolutionize drug discovery and development through artificial intelligence. Founded in 2024 by Dov Gertz (CEO), Oded Kelev (CTO), and Ido Weiner (CSO), the company currently operates with a team of 15 employees based in Israel and was notably part of Intel Ignite's final accelerator cohort before the program's discontinuation in August 2024 due to budget cuts.

At its core, Converge Bio is pioneering an innovative platform that seamlessly integrates Generative AI with traditional biological research methods, fundamentally transforming the drug discovery process. Their system employs three proprietary algorithm families — Predict, Explain, and Generate — each serving a crucial role in the drug development pipeline. The Predict algorithm utilizes computational simulations to forecast biological responses, while Explain provides vital biological context to these predictions, enabling the discovery of complex mechanisms.

The Generate algorithm completes the trio by offering optimization recommendations for molecular sequences. The platform's sophisticated approach is particularly promising in cancer research, where it's being used to design precise antibody-based therapies that could significantly reduce development time and improve clinical trial success rates. To address the critical concern of AI "hallucinations," Converge Bio has implemented robust validation processes, focusing molecular changes on areas identified as significant by their Explain algorithms, thereby ensuring reliability in their drug development process.

Twine

A new cybersecurity startup, Twine, has emerged with a significant $12 million seed-funding round, led by Dell Technologies Capital and 1011 Ventures. The round attracted notable participants including Wiz co-founders Assaf Rappaport and Roi Reznik, demonstrating strong investor confidence in the company's innovative approach. Founded in 2023 by former Claroty executives Benny Porat (CEO), Nadav Erez (CTO), Omri Green (Go-to-Market Lead), and Justin Woody (Marketing), Twine brings together deep expertise from both the Israeli Intelligence Corps and the cybersecurity industry. Operating from Tel Aviv and Seattle, the company has already built a team of over 20 professionals across Israel and the U.S.

Twine's groundbreaking platform introduces AI-based entities that work alongside human cybersecurity teams, revolutionizing how security operations are performed. Their first AI assistant, focused on identity management and user security, showcases the platform's ability to learn organizational intricacies and autonomously handle complex security tasks.

This innovative approach directly addresses the industry's persistent challenges of talent shortages and operational efficiency, with CEO Benny Porat emphasizing how their digital workers enable human experts to focus on strategic priorities while enhancing overall security effectiveness. Twine's vision of integrating AI-powered digital workers with human expertise positions them to potentially reshape the cybersecurity landscape, with plans to expand their AI assistant offerings to cover additional security domains.

Israel Aerospace Industries

Israel Aerospace Industries (IAI) has experienced a 64% surge in net profit, with its order backlog reaching a record high. IAI reported a record-breaking order backlog of $25 billion in the third quarter, an increase of $2.8 billion compared to the second quarter. This growth was fueled by two massive orders from the Ministry of Defense totaling $4 billion, as well as an additional $1 billion deal reportedly involving the supply of spy satellites to Morocco, according to foreign sources. Despite these achievements, a successor for outgoing chairman Amir Peretz, whose three-year tenure is ending, has not yet been found, with Prime Minister Benjamin Netanyahu opposing the candidacy of former UN Ambassador Gilad Erdan.

The ongoing conflict has driven increased production of advanced defense systems for the Israel Defense Forces (IDF), further boosting IAI’s financial results. The government-owned defense company announced its highest-ever order backlog of $25 billion for the third quarter, reflecting a $2.8 billion increase from the previous quarter.

This unprecedented growth was largely attributed to two major orders secured in August: one worth approximately $2 billion and another valued at about 2 billion shekels. Additionally, a $1 billion deal, reportedly involving the supply of spy satellites to Morocco, contributed to the record-breaking backlog.

Financial Highlights:

• Revenue Growth: IAI’s third-quarter sales rose 16% year-over-year to $1.54 billion.

• Net Profit: The company’s net profit soared by 64% compared to the same period last year, reaching $122 million.

The IAI board meeting today marked the last under the leadership of outgoing chairman Amir Peretz, who is stepping down after three years. The focus now shifts to appointing his successor, a process that has sparked political tension. Prime Minister Benjamin Netanyahu and Defense Minister Israel Katz have opposed the candidacy of Gilad Erdan, Israel’s former ambassador to the United Nations, as the next chairman

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IAI’s record-setting performance underscores its critical role in supporting national defense during a time of conflict while setting new benchmarks for the defense industry. However, the leadership vacuum poses challenges as the company moves forward.

Wix

Wix Ltd., under the leadership of CEO Avishai Abrahami, concluded the third quarter of 2024 with 12.9% revenue growth, reaching approximately $445 million, and a 37% increase in Non-GAAP net profit, amounting to $89.3 million, or $1.50 per share. According to GAAP accounting standards, the quarterly net profit stood at $26.8 million, nearly quadrupling compared to the same period last year.

Wix has raised its full-year forecast, now projecting revenues of $1.757–$1.764 billion for 2024, marking a 13% growth compared to 2023. This is an increase from the previous forecast of $1.747–$1.761 billion. For the fourth quarter, Wix anticipates 13%-15% growth compared to the same quarter last year. Wix also expects to generate free cash flow of $483–$488 million, exceeding its previous forecast.

Cyera

Israeli cybersecurity company Cyera announced today (Wednesday) the completion of a $300 million Series-D funding round, valuing the company at $3 billion. The round was led by Accel and Sapphire Ventures, with participation from existing investors, including Sequoia, Redpoint Ventures, and Georgian.

Cyera’s previous funding round, which took place less than a year ago in April, also raised a similar amount but at a valuation of $1.4 billion. In just six months, Cyera has doubled its valuation, reminiscent of the rapid valuation increases seen during the tech bubble. To date, Cyera has raised a total of $760 million since its founding in 2021.

Last month, Cyera made headlines when it acquired Trail Security, a stealth-mode startup, for $162 million. Trail, founded less than a year ago by three graduates of the prestigious Talpiot program in the Israeli Intelligence Corps, developed advanced AI-based technology to prevent data leaks in organizations. The acquisition marked another strategic move in the Israeli cybersecurity market, as Trail’s 35 employees, mostly engineers, joined Cyera’s workforce of approximately 400.

The merger, backed by prominent investor Gili Raanan through his Cyberstarts fund, enables Cyera to offer a combined solution for data security management. According to the company, this integrated approach enhances its ability to provide comprehensive information security solutions. Cyera plans to recruit an additional 200 employees, further scaling its operations and innovation capabilities.

Cyera was founded in 2021 by Yotam Segev and Tamar Bar-Ilan, both alumni of the elite Talpiot and Unit 8200 programs. The company has developed an AI and machine learning-based platform designed to identify, classify, and protect organizational data across various environments, including on-premise servers, cloud services, and SaaS (Software as a Service) platforms. SaaS services, such as management and storage tools, allow organizations to use software without local installation.

According to the company, Cyera’s platform enables complex processes to be performed with high speed and precision through dynamically updated automated processes. This latest funding and the strategic acquisition position Cyera as a key player in the global cybersecurity market, driving innovation and expanding its capabilities to address the evolving challenges of data protection.

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A PIECE OF HISTORY

Operation Returning Echo

The Gaza–Israel clashes in March 2012 represented a significant period of hostilities between Israel and Gaza—beginning on March 9, 2012, and continuing for four days. The conflict was triggered by the Israeli Air Force's targeted assassination of Zuhair al-Qaissi, the leader of the Popular Resistance Committees (PRC). Israel stated the assassination was a preemptive action to prevent an imminent terrorist attack planned from Gaza. In retaliation, militants primarily from the Islamic Jihad group in Gaza fired a barrage of rockets targeting civilian areas in southern Israel.

Following al-Qaissi’s assassination, rocket attacks from Gaza escalated rapidly, with militants firing over 300 rockets into Israeli territory during the clashes. These rockets targeted cities such as Be’er Sheva, Ashdod, and Ashkelon, forcing residents into bomb shelters and disrupting daily life. Although Israel’s Iron Dome missile defense system intercepted dozens of rockets, others still caused injuries and property damage. Schools and businesses in the affected areas closed for safety reasons, highlighting the widespread disruption caused by the violence.

The Israeli military responded to the rocket fire with a series of airstrikes across Gaza, targeting militant launch sites, weapons storage facilities, and operatives involved in the attacks. Over the course of the conflict, Israeli strikes killed 25 Palestinians, most of whom were identified by Israel as militants, though civilians were also among the casualties. Both sides accused each other of targeting civilians, escalating tensions further. For Israel, the strikes were framed as defensive measures to protect its citizens, while Gaza militants claimed they were retaliating against ongoing aggression.

Efforts to mediate a ceasefire were initiated as the violence continued to escalate. Egypt played a central role in brokering a truce between the parties, using backchannels to communicate with both Israel and Hamas, the governing body in Gaza. On March 13, a ceasefire was reached, though sporadic rocket fire and airstrikes occurred afterward. Although the truce brought temporary calm, the underlying tensions and grievances remained unresolved, leaving the region on edge.