My first thought before reading was that it's a shame of course, but not a surprise. While reading, I didn't see (or missed?) if charges are going to be laid in this case. Maybe they're just gathering info on who to charge? Surely there have to be existing laws that suffice.
I tried to find where Haaretz wrote about STOIC (as referenced in this article), and instead came across an article about STOIC having had a campaign to influence lawmakers. (It's paywalled, but the comments section is interesting.) There's also a headline off that page about a march of nationalist Israelis through "the Palestinian area of Jerusalem," chanting: