I just got off the phone with Tim Harmsen of Copper Custom.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) has officially started contacting Federal Firearms Licensees (FFLs) in order to start a formal recall of Galil ACE pistols. The recall is due to a third pin hole in the AKM-style receiver that technically makes the pistol a “machine gun” under federal law, despite the fact that they are not machine guns by design, nor readily converted into machine guns.
IWI identified the potential problem and alerted the ATF to the possible violation, and started a voluntary recall on their own.
That recall is now mandatory, and Galil ACE owners are required to return their firearms to IWI.
You can read more about the steps IWI has proactively taken to help rectify this situation at Full 30 blog.