PROJECT BUTTERFLY

An Israeli Intel Op Focused on Terrorizing Americans

"Project Butterfly" emerged as a codename for Psy Group’s campaign against BDS activists, a movement advocating for economic and political pressure on Israel over its policies toward Palestinians. The operation was detailed in various reports, including articles from The New Yorker and Wikipedia entries, which highlight its scope and objectives. Psy Group, known for employing former Mossad operatives, operated in a legal gray area, as Israeli state intelligence is prohibited from spying on American citizens, but private entities face fewer restrictions.

Psy Group aimed to "destabilize and disrupt" BDS from within by crafting a "new reality" where activists faced consequences—often branded as terrorists in donor pitches. Seeking $2.5 million for year one of a three-year plan, plus $1.3 million more in 2017, they sold it as "investing in Israel’s future," all shrouded in secrecy to mask ties to Israel or Jewish-American groups. Their tactics included scouring the web and social media for dirt—like compromising photos of pious Muslim students—and leaking it via untraceable avatars, a "name-and-shame" strategy that silenced some, as activists "disappeared" from the scene, per a former employee. Fake news sites and personas further smeared BDS as terrorism, part of a "narrative warfare" infrastructure detached from Israel.

Project Butterfly was the execution arm of Psy Group’s operations while Canary Mission was more aptly the intel gathering aspect of Psy Group. Canary Mission did the identification, targeting, and narrative building that Project Butterfly relied upon.

High-profile figures fueled the controversy: Psy Group founder Royi Burstien led with ex-Mossad deputy Ram Ben-Barak calling it "a war," and former Netanyahu adviser Yaakov Amidror backing it after legal clearance from Daniel Reisner. Netanyahu himself advised. Targets included Hatem Bazian of American Muslims for Palestine, hit with terrorism-labeling fliers outside his home in May 2017. Legally murky—exploiting private-entity loopholes—and ethically fraught with disinformation and personal attacks, it drew criticism for trampling civil liberties, especially as U.S. agencies struggled to counter it, per The Nation.

This should alarm the average citizen, raising questions about U.S. policy’s tolerance for foreign meddling on its soil. It casts doubt on the moral justifications for Israeli support parroted across social media and digital entertainment—from Hollywood to cable news—while hinting at similar influences seeping into music and sports. Project Butterfly’s impact lingered, quieting some activists but sparking debate over private intelligence and U.S.-Israel ties, even after its website, outlawbds.com, faded.

The operation began in February 2016, with a focus on up to ten U.S. college campuses, including the University of California, Berkeley. This timing coincided with heightened tensions around BDS activities, particularly on university grounds, where student activism was prominent.

The primary goal, as outlined in Psy-Group documents from May 2017, was to "destabilize and disrupt anti-Israel movements from within." This was achieved by creating "a new reality" where activists faced consequences for their actions, often equating their activities with terrorism in messaging to donors. To fund these efforts, Psy-Group sought $2.5 million for the first year of a three-year plan, pitching to donors that they were "investing in Israel’s future." In 2017, they also requested an additional $1.3 million, emphasizing secrecy to ensure no links to Israel or the Jewish-American community were traceable.

Psy-Group’s methods involved sophisticated intelligence-gathering and influence techniques. They scoured the internet, social media, and the "deep" web for derogatory information about BDS activists. For instance, if a student claimed to be a pious Muslim, operatives would search for compromising photos, such as those showing alcohol consumption or extramarital affairs, and release them online via avatars and untraceable websites. This "name-and-shame" tactic aimed to silence individuals, with a former employee noting that some activists "would disappear" after such exposure, becoming less engaged in activism.

The operation also included creating fake news outlets and phony social media personas to spread disinformation, branding BDS supporters as terrorists. This was part of an "infrastructure for narrative warfare—alternative messaging and negative platforms," as described in internal plans, ensuring activities were not connected to Israel.

Project Butterfly involved several high-profile figures, adding to its controversy. Royi Burstien, Psy-Group’s founder, led the initiative, while Ram Ben-Barak, a former Mossad deputy director and director general of Israel’s Ministry of Strategic Affairs from 2014 to 2016, was enthusiastic, calling it "a war." Yaakov Amidror, former national-security adviser to Benjamin Netanyahu, advised the project after legal confirmation from outside counsel Daniel Reisner, stating, "If it’s legal, I don’t see any problem." Notably, Israeli Prime Minister Benjamin Netanyahu also served as an adviser to Psy-Group for this project, linking it to state-level interests.

The operation showed particular interest in individuals connected with American Muslims for Palestine, including its founder, Hatem Bazian, a lecturer at UC Berkeley and professor at Zaytuna College. In May 2017, fliers labeling Bazian as supporting terrorism were found outside his home, exemplifying the personal impact of these tactics.

The legality of Project Butterfly was a point of contention. While Mossad is barred from spying on American citizens, Psy-Group, as a private entity, operated without such restrictions, employing ex-Mossad operatives. This raised concerns about foreign interference in U.S. affairs, particularly given the operation’s focus on American students and faculty. Reports suggest U.S. intelligence agencies struggled to respond, facing legal and jurisdictional challenges, as noted in The Nation’s coverage.

Ethically, the operation’s methods—spreading disinformation, targeting individuals with personal attacks, and equating activism with terrorism—drew criticism. It subjected students and faculty to unwarranted investigations, false accusations of antisemitism, and reputational damage, often amplified through national cable and broadcast news.

The impact of Project Butterfly included silencing some activists, with reports indicating individuals became less engaged after derogatory information was publicized. However, it also sparked broader debates about the role of private intelligence firms in international politics and the protection of civil liberties in the U.S. The operation’s closeness to Netanyahu and its use of state-like tactics highlighted tensions between private and state interests, particularly in the context of Israel-U.S. relations.

Psy-Group’s website, outlawbds.com, which published information about BDS leaders, is now defunct, but the legacy of Project Butterfly continues to be discussed in media and academic circles, especially regarding foreign influence and campus activism.