Israeli fintech firm Riskified is transferring $500 million out of Israel in support of private-sector opposition to government’s judicial overhaul
Nickie Louise
Posted On March 8, 2023
For the ninth straight week, tens of thousands of people rallied against the government’s plan to overhaul the court system. But despite the rallies, the Israeli government advanced the plan to overhaul the country’s legal system, defying a mass uproar among Israelis and also calling for restraint from the United States.
Fast forward a few months since the protest started, Israel’s private companies, including tech firms, are now expressing their displeasure with the government’s planned overhaul of the judicial system. Riskified, an Israeli financial technology firm, is the latest company to join the opposition.
According to a report from Reuters, Riskified, a fraud management platform for online merchants with offices in Israel and New York, is transferring $500 million out of the country due to concerns about potential financial stability in the country.
In a letter to the staff about the company’s decision, CEO Eido Gal expressed concerns that the proposed changes to the court system, if ratified, could lead to a “prolonged economic downturn in Israel.”
“Our concern is that as the financial situation continues to deteriorate, and in order to maintain financial stability, the government will limit transfers and withdrawals of large amounts,” Gal said in the letter seen by Reuters.
Gal said the company would be transferring $500 million in cash and equivalents out of Israel and also expand hiring for its R&D site in Lisbon, Portugal, Reuters reported.
“The laws being passed can lead to the dismantling of our independent judicial system,” Gal wrote. “More importantly, this will result in Israel changing from a democracy with liberal values into a more authoritarian state.”
Riskified is not alone. “A number of other high-profile companies in Israel have already said they would be transferring large sums of money abroad due to the political uncertainty,” Reuters said.
