Police intelligence had obtained documents indicating that around NIS 650,000 had been deposited in 2022 into Deri's daughter's bank account.
A third of Holocaust survivors in Israel live under the poverty line, according to the Foundation for the Welfare of Holocaust Victims.
Moshe Arbel will temporarily replace Arye Deri until the coalition is able to pass a law that will allow him to return.
Deri's statement came after a slew of comments from both sides of the political divide that were interpreted as threats against the negotiations.
Gallant is rumored to be considering apologizing for the timing of his statement against judicial reform, which he made when Netanyahu was abroad.
Shas Chairman Arye Deri has been mediating between Gallant and Netanyahu together with MK Dudi Amsalem.
The coalition deemed the president's proposal "one-sided, biased and unacceptable" soon after it was presented on Wednesday night.
The law proposal's purpose is to enable Netanyahu to reinstate Deri after the High Court struck down his appointment last month.
Purim Shpiel: The following is a satirical article from The Jerusalem Post's annual parodic Purim page, The Jerusalem Roast. Enjoy!
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