I am aware that the recovery kernels are not Bitcoin itself. After all, duplicating the recovery kernels will not increase the value of Bitcoin, for example. However, the reconstruction nuclei themselves are, after all, of proprietary significance.
- The trial court emphasized that the transfer of the information to the authorities in the United States, in and of itself, did not realize the seizure, and that the seizure was carried out at a later date, and therefore there is a separation between the transfer and the seizure, and the transfer cannot be linked to the seizure based solely on retrospective evidence. Reinforcement for this can be found in the Court's ruling in the matter of Additional Criminal Hearing 1062/21 Yonatan Urich v. the State of Israel (2022):
"Second, as my colleague Justice (as he was then called) Hendel rightly pointed out in the Shimon case, "the decision as to what to do in the matter of a seized object is a decision of a civil nature, which is mainly related to the property rights of the owner of the object" (in paragraph 13 of his opinion; See also paragraph 7 of Justice Baron's opinion). In other words, the purpose of the seized return proceedings is to determine whether there is room to remove a seized object from the possession of the authorities, and if so, what will be done with it - for example, in a scenario in which there is a dispute as to who is the owner of the rights to the object (see Miscellaneous Applications Criminal 555/07 Yihya v. Ariel Police, para. 12 [published in Nevo] (March 6, 2007) (hereinafter: the Yihya case)). Search proceedings, on the other hand, are not civil-oriented and do not focus on the proprietary rights in the object or the entity in whose possession the object should be found. These are proceedings that are at the core of the criminal proceeding, which focus on the question of whether investigators should be allowed to collect information from the object in the course of an investigation - whether or not it is necessary to seize the object for this purpose - in order to advance the investigation of the truth and complete the evidentiary combination."