DAY 531 IN CAPTIVITY • DAY 3 BACK TO WAR: A Divided Israel Expands Military Operations in Gaza, Houthis Fire Missiles at Central Israel, Mass Demonstrations in Jerusalem, GSS Head Fired
NEXT ZOOM BRIEFING: Sunday, March 23, 6 PM Israel Time, 4 PM GB, Noon EST, 9 AM PST, invites will go out Sunday Morning
Israel is facing unprecedented levels of division. While Netanyahu's tenure, particularly in recent years, has been marked by increasing polarization, today we are at a whole new level. The country has returned to combat in Gaza—against the will of a substantial portion of the people, while at the same time pursuing policies in other areas that only a minority supports. For the first time in history, soldiers are being called up for reserve duty while the country is deeply divided—exemplified by the government’s efforts to dismiss and replace the head of the Shin Bet Security Service. Next week, it is expected the government will initiate proceedings to dismiss the Attorney General. Concurrently, there are motions to reintroduce several aspects of the government’s plan to severely weaken the independence of the judiciary.
Prime Minister Netanyahu has co-opted the American far-right's rhetoric about the “deep state”, despite having served as Prime Minister for 18 of the past 20 years. Netanyahu’s claim last night—that the deep state intervenes whenever a right-wing government comes to power—is particularly ironic, given that right-wing parties have dominated Israeli politics for almost the past 50 years. Netanyahu is using this inflammatory rhetoric to continue to incite his supporters against both the judiciary, and the state’s institutions, while trying to gain support from the MAGA world in the US.
All of this is unfolding while the lives of the remaining hostages hang precariously in the balance. Their families are frantic, feeling ignored, and excruciatingly concerned that the fates of their loved ones are being sealed by a government singularly focused on achieving a mythical “total victory.” Over the past two days—following the resumption of fighting in Gaza— the families of the hostages have urgently requested meetings with the Prime Minister or the Security Cabinet, but their requests have been ignored..
The situation has escalated to the point that President Herzog, who has bent over backwards to maintain neutrality in the conflict between the government and its opponents regarding the weakening of the judiciary, has decided to issue the following statement:
It is impossible not to be deeply troubled by the harsh reality unfolding before our eyes. As is well known, thousands of reserve call-up orders have been issued recently. It is inconceivable to send our sons to the front while simultaneously advancing controversial measures that cause deep division within the nation.
It is unacceptable to resume fighting to fulfill the sacred duty of bringing the hostages home while at the same time ignoring and failing to support their anguished families, who are going through hell on earth.
So many bereaved families, thousands of citizens whom I meet every week—including today—are pleading, crying out to prevent the widening of rifts and divisions. They call for unity, for love of Israel, for safeguarding the country, and for conducting a full, comprehensive, and independent investigation into the horrific disaster. It is unthinkable to ignore these voices and not seek consensus. Even if I am the last one demanding it, I will devote myself entirely to the mission of reaching understandings and agreements.
Unfortunately, we are witnessing a series of unilateral actions, and I deeply fear their impact on our national resilience.
A few words about our public servants—who are now the target of a campaign against them. These are dedicated civil servants who perform their duties with loyalty, including reservists, bereaved families, and the neighbors of each and every one of us—the best among us, serving the state. They should not be the subject of defamation. We must engage them, not alienate them. In general, if we want to attract the best people to serve the public, this is not the way to do it.
I urge everyone to carefully consider each and every step and assess whether it strengthens national resilience—especially whether it contributes to the war effort and the return of the hostages.”
The Likud party responded: “Herzog has joined the ‘deep state’.”
Meanwhile, a sense of the war returning has settled over the residents of central Israel. Last night, for the first time in months, residents of Tel Aviv, Jerusalem, surrounding areas were jolted awake by sirens at 4 a.m., following a missile launch by the Houthis aimed at the center of the country. The missile was intercepted before entering Israeli airspace. Later in the afternoon, Hamas successfully launched three rockets toward the same region; two fell harmlessly in open areas, and a third was intercepted. Early this evening, the Houthis launched another missile toward the center of the country, forcing residents of Jerusalem to seek shelter and prompting a temporary halt to all takeoffs and landings at Ben Gurion Airport for the second time that day. I fear it won't be long before international airlines, having only recently returned to Israel, may once again cancel their flights to and from the country.
GAZA
The IDF has expanded its ground operations inside Gaza. The Army Spokesman released the following statement detailing its latest actions in Gaza:
IDF forces have expanded their operations in the southern Gaza Strip and continue their activities in the northern and central parts of the Strip. During the past few hours, IDF forces have launched a ground operation in the ‘Shaboura’ neighborhood in Rafah. As part of the operation, the forces destroyed several terrorist infrastructures.
At the same time, IDF forces continue their ground operations in the northern and central Gaza Strip. In northern Gaza, IDF forces targeted and destroyed a terrorist infrastructure that had served in recent months as a command and control center for Hamas operatives, from which they planned and executed terrorist attacks against IDF forces and Israeli civilians
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Fighter jets and other aircraft continue to strike and eliminate terrorists and terrorist infrastructure of various organizations across the Gaza Strip in recent hours. The IDF and Shin Bet will continue to act against terrorist organizations in the Strip to protect Israeli civilians.
MASS PROTESTS IN JERUSALEM AMID CONTROVERSIAL GOVERNMENT VOTE
Tonight, as the government proceeded with a vote to fire the head of the Security Services—a move declared potentially illegal by the State’s Attorney General—tens of thousands demonstrated in the rain-soaked streets of Jerusalem. Demonstrations took place throughout the day, with police violently attempting to disperse the crowds, even throwing some individuals to the ground—including Yair Golan, former Major General in reserves and head the Democrats Party.
Here’s Golan’s response after the fact:
Don’t worry, I’m fine. After 38 years in the IDF, a few shoves won’t stop me—or us. Now—we keep fighting, we don’t stop for a moment. We stop the coup. We bring the hostages home. After that, we change the government, we take the country back from the hands of the corrupt, the draft dodgers, and the failures—back to the people. Only through determined struggle, with all of us in the streets—this is how we fight, this is how we win.
RONEN BAR’S POWERFUL LETTER
As the cabinet meeting to dismiss the Head of the GSS began, Ronen Bar released one of the most forceful, fiery letters ever written by someone in his standing.
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Last night, it was reported that the government is expected to convene today to discuss ending my tenure as Director of the Israel Security Agency (Shin Bet). This is an emergency meeting, convened in violation of every basic legal principle regarding the right to a hearing and contrary to the opinion of the Attorney General.
As someone who has served the security of the State of Israel for more than 35 years, and who holds deep respect for its institutions and the rule of law, I wish to make it clear from the outset: my decision not to attend this government meeting stems solely from my understanding that it constitutes a discussion inconsistent with the provisions of the law and the rules governing the dismissal of any employee—especially one holding a senior position, and particularly the head of the Shin Bet.
I believe that a precedent-setting and significant decision concerning my dismissal—especially after I had already announced that I do not intend to end my tenure at the planned time—must be based on detailed and substantiated claims, including specific examples presented to me, which I could then address. This should include the presentation of relevant documents and sufficient time to respond. Unfortunately, the draft decision includes vague, unsubstantiated claims that prevent me from formulating a proper response and appear to conceal the real motives behind the effort to terminate my tenure. I note that even in a prior conversation with the Prime Minister, despite my request, no examples were provided.
Under these circumstances, I cannot respond to the claims listed in the proposal, most of which appear to have been fabricated solely for this process and were absent from all my prior conversations with the Prime Minister. It is telling that not a single example accompanies these claims. A proper response to such allegations requires a structured process, including presenting relevant documents, not a superficial procedure with a predetermined outcome.
In any case, these are baseless accusations that serve only as a smokescreen for wholly different, improper, and disqualifying motives aimed at undermining the Shin Bet’s ability to function with professionalism, legality, and in service of Israeli citizens. Regarding the effort to end my tenure, I hope that it will proceed lawfully. In light of the claims raised in the draft decision, I will provide a comprehensive account of offensive operations and strategic recommendations I brought before the Prime Minister—both before and after October 7. Many of these were not acted upon by him. I will also detail the wide-ranging internal recovery processes now underway in the Shin Bet, based on the lessons of the October 7 investigation.
In addition, as is known, a complex, far-reaching, and highly sensitive investigation is currently underway, concerning Qatari involvement in Israel’s most sensitive decision-making arena—the Prime Minister’s Office. I view the full completion of this investigation, and the pursuit of truth regardless of the outcome, as a paramount public duty. As reported, significant investigative steps are being taken at this time. Any attempt to interfere with the investigation through an urgent and abrupt dismissal—based on fundamentally flawed claims and tainted by improper motives and deep conflicts of interest—represents a grave danger to Israel’s security.
Moreover, the suggestion in the draft decision that the Shin Bet’s professional opinion in support of an independent, thorough investigation into the events of October 7 is a reason to end my tenure is deeply troubling. That position is part of my duty as Director of the Shin Bet. It is not a sign of disloyalty, but of fidelity to the public over personal interests. The urgent national need for such an investigation must not be subordinated to the personal considerations of those involved, for it is the only way to ensure that such a massive systemic failure does not recur.
Above all, I am concerned that the alleged “loss of trust” stems from my commitment to providing independent and professional assessments in the highest echelons of national decision-making, even when they differ from those around me. I have done so—and continue to do so—on the issue of the hostages, by proposing and pushing for unique operational initiatives and working toward achieving the war’s objectives. I also did so before the October 7 massacre, with countless warnings I submitted to the political echelon. That said, I have always carried out government decisions, even when my professional views were not adopted. That is how I was trained in the Shin Bet—to serve the state, not personal interests, and never to obstruct the search for truth, whether regarding the events leading to the massacre or the grave matters currently under investigation.
I will present my full position—both regarding the allegations in the proposal and the motives behind them—in the appropriate forum, in accordance with the law and decisions of the competent legal authorities, and to the Israeli public. But in brief:
Contrary to what is claimed, since taking office—and especially since the outbreak of the war across multiple fronts—the cooperation between the Shin Bet under my leadership and the Prime Minister has been intensive and effective, yielding significant results in counterterrorism and advancing the war’s goals. The Prime Minister himself has acknowledged this in multiple settings, including public statements. The agency implements the policies set by the political leadership, and will continue to do so. Unfortunately, ministers are largely unaware of these efforts due to the Prime Minister’s directive over the past year prohibiting me from meeting with ministers—a directive of questionable legality. I was therefore surprised to see a claim in the proposal suggesting that a lack of trust between the Prime Minister and myself hinders the agency’s functioning. If that is the case, I request concrete examples to support this unsubstantiated claim. Especially in light of the unprecedented scale and effectiveness of Shin Bet operations during wartime, under political direction, in all arenas—from terrorism to espionage threats.
The proposal also implies a lack of trust between the Prime Minister and me regarding the handling of the hostage issue. Without delving into classified details, I note that the recent hostage deal came to fruition due to unique actions personally led by me, with the Prime Minister’s knowledge. The deal was shaped by objectives he set, brought by him for cabinet approval, and passed with his support. Therefore, the claim of “lack of trust” has no basis—unless the real, unstated intent was to negotiate without achieving a deal. In fact, sidelining both the Mossad director and myself from leading the talks hurt the negotiating team and did not help secure hostage releases. Thus, the Prime Minister’s claim in this regard is groundless.
I reiterate my personal commitment—and the Shin Bet’s commitment—to do everything in our power to return both the living and the deceased hostages to Israel, especially during this critical window of opportunity.
The State of Israel is in an exceptionally difficult and complex period. Fifty-nine hostages remain in the heart of Gaza. Hamas has not been defeated. We are in the midst of a multi-front war, and Iran’s hand is deeply entrenched within the country. Israel remains strong, determined, and fighting—but everyone in public office bears enormous responsibility. It is astonishing that at such a time, the government is pursuing measures that weaken it—both internally and in the eyes of its enemies.
As stated, the Shin Bet—and I, as its head—will continue to perform our duties in accordance with the law and the decisions of the appropriate legal institutions, as is fitting in a state governed by law. I will not deviate from that path, not even slightly. I will present my full and detailed response to the allegations in the draft decision and to the motives behind them in the appropriate forum, as determined by the competent legal authorities.
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Tonight, after Bar's letter was received and a discussion was held, the cabinet voted unanimously to fire Bar as of April 10th.
FORMER SUPREME COURT PRESIDENT WARNS OF CIVIL WAR
Tonight, former Supreme Court President Aaron Barak was interviewed on multiple television news broadcast. In the interviews, he cautioned against the potential of civil war.
BUSINESS
Utila
The Israeli fintech company Utila, founded in 2022, has developed a secure digital wallet for various digital assets and has raised $18 million in a Series A funding round. The round was led by Nyca Partners, with participation from seed investors NFX and Wing VC, alongside funds such as Gaingels, Haymaker Ventures, and Cerca Partners. With this latest funding, Utila’s total investment since its founding has reached $30 million.
The digital asset market is driving a significant transformation in traditional financial infrastructures, as organizations are increasingly required to adapt to the growing demand for applications such as payments and financial management. Utila’s platform—essentially a secure digital wallet for various digital assets, primarily cryptocurrencies—addresses the many challenges associated with institutional-level digital asset management.
Utila currently employs 32 people across its offices in New York, Tel Aviv, London, Berlin, and Singapore. The company reports that it secures over $8 billion monthly and has processed transactions totaling over $35 billion since launching its product approximately 18 months ago.
257
257, an Israeli-American startup specializing in artificial intelligence for the home energy market, announced today that it has secured a $9.2 million seed funding round. The round was led by F2 Venture Capital, with participation from prominent investors in the energy and AI sectors, including Mike Polsky (founder and CEO of three U.S. electricity providers), Otto van Truske (clean energy investor in Europe and founder of SUSI Partners), Jeff Hammerbacher (co-founder and CEO of Open Athena, founder of Cloudera), and Gil Golan (former CTO and head of investment division at General Motors).
Founded in 2023 by Scott Rosenberg (CEO) and Tal Chalozin (CTO), 257 is developing a platform based on a “digital twin” model for every home in the U.S. The technology integrates hundreds of public and private data sources with machine learning and AI technologies to analyze and optimize residential energy consumption.
Next Insurance
The European insurance group Ergo is acquiring the Israeli company NEXT Insurance for $2.6 billion in cash.
NEXT Insurance was founded in 2016 by Guy Goldstein, Alon Huri, and Nissim Tapiro. Huri, who served as the company’s CEO, left last year to join Team8.
The company’s platform, which is based on artificial intelligence and machine learning, processes requests within 10 minutes and provides a policy offer tailored to the risk level, location, and various specific factors of the business. This helps customers avoid unnecessary payments or, conversely, insufficient coverage, which could prove to be a critical mistake when needed.
