The police searched a person's computer and found recovery core for a Bitcoin wallet which were than transferred to the US authorities. After the US authorities used the information to seize that person's bitcoins, the man sought that the seizure of the coins be voided.
The Court rejected the person's motion to void the seizure of the coins. Under Israeli law, it is not forbidden to allow for the removal of property from Israel for the purpose of its seizure by a foreign country, but only to facilitate the seizure in Israel. However, evidentiary material can be transferred to a foreign country for the purpose of promoting legal proceedings or as part of joint investigations. Here, the recovery cores, being a separate and independent tool that has the power to bring about the takeover of the virtual property, have property elements that cannot be ignored. These elements turn the information into "dual material", and the police should have treated it as such and conducted some sort of proper procedure that gives the person the right to plead his case prior to the transferring of the information to the authorities in the United States. However, this does not void the entire process and the man still has other options to contest the seizure of the coins.