The youth suspected of torching the mosque in the West Bank village of Yasuf was released on bail Thursday evening, after the police verified his alibi.
Nevertheless, the minor's involvement in the case is still investigated.
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The youth, who is a relative of Kach founder Rabbi Meir Kahane, was arrested in the morning hours and interrogated for several hours.
Attorney Yehuda Shushan, representing the suspect told Ynet that his client has no criminal record and that he adamantly denies all the allegations against him, adding that he was "traumatized by the arrest."
"The investigators kept telling him that they know what they know based on intelligence, saying 'we know you didn’t do it, but we know you know who did, so just tell us who did it'," said Shushan.
Shushan claimed his client was denied his rights as a minor in police custody, i.e. – having an adult family member present during questioning.
"The police would be better off spending their time tracking down the real suspects, instead of arresting a minor who has nothing to do with this. I hope they right this wrong and release him before he is arraigned."
Knesset Member Michael Ben Ari (National Union) welcomed the youth's release and urged the police to pursue the case and make sure the responsible parties are prosecuted to the full extent of the law.