Jerusalem Court Freezes Billions in Palestinian Authority Funds for October 7 Victims

Monday, 10 February 2025 | The Jerusalem District Court issued on Sunday a temporary freeze on approximately NIS 2.8 billion (US $760 million) in funds for the Palestinian Authority (PA), following a lawsuit filed by hundreds of victims of the October 7 Hamas attack and the subsequent war.

The court ruled that the plaintiffs, who include survivors and relatives of victims, have a legal basis to claim compensation under Israel’s Compensation for Terror Victims Law. The ruling determined that each plaintiff is entitled, at this stage, to at least NIS 5 million (US $1.35 million) in damages. As a result, the freeze on PA assets was increased by an additional NIS 2.72 billion (US $740 million), in line with previous decisions on similar cases against the PA and Hamas.

The lawsuit, led by attorney David Simana, represents individuals who suffered physical or psychological harm in the October 7 terror attack. Many of the plaintiffs reside in communities near Gaza and argue that the PA has long encouraged terrorism against Israel. The frozen funds are held by the Israeli government.

Court Rejects Palestinian Authority’s Appeal

The ruling follows a recent Israeli Supreme Court decision rejecting a PA petition to overturn a law allowing terror victims to sue those who finance attacks. Yitzhak Amit, who presided over the case, stated that the PA provides financial support to terrorists and their families in direct connection to their acts of violence.

“The PA claims a violation of its rights, but this alleged harm stems from its own decision to financially reward murderers whose hands are stained with the blood of innocent Israelis,” Amit wrote. “The PA has the option to choose a different path and end its policy of incentivizing terrorism.”

In its appeal, the PA had argued that it faced nearly 180 lawsuits from Israeli victims, with potential damages amounting to billions of shekels. The Supreme Court rejected the appeal, ruling that even if the law had political motivations, it did not justify its annulment.

Attorney Simana welcomed the district court’s decision, calling it a significant step for victims of terror.

“This is the largest asset freeze ever granted in a terror victims’ lawsuit,” Simana said. “We will continue to stand with bereaved families and survivors in this fight against terrorism.”