Earlier this week, the US government announced sanctions against Tal Dillian, the founder of a controversial government spyware maker, and his business associate Sara Alexandra Faisal Hamou.
U.S. Treasury officials said in announcing the sanctions that Mr. Dillian and Mr. Hamou developed and sold spyware that was later used to target Americans, including government officials, policy experts, and journalists. It criticized the act as enabling human rights violations.
This move was a first. Until now, the U.S. government has targeted spyware companies, rather than the individuals who run them, by placing them on blocklists and imposing sanctions that prohibit U.S. individuals and companies from financing or doing business with them. But it looks like the gloves will come off from now on. If the U.S. government believes someone has sold spyware to authoritarians or dictators, or that its spyware is being used against the wrong targets, it will directly go after the people running those spyware companies. Become.
People who worked in the government spyware industry also expressed concerns.
“Wow. That's big,” said the former head of a spyware maker that sold to governments when TechCrunch shared news of the sanctions.
The person, who like others cited in this article spoke on condition of anonymity, said he was concerned, but at the same time, unlike Intellexa founder Dilian, his previous company was not regulated. He said he was confident he was doing things the right way. It was also approved by the Ministry of Finance.
“He was selling it to anyone who would pay,” said a former spyware chief.
The person also added that, in his opinion, Mr. Dillian made a mistake by trying to circumvent restrictions previously placed on his company by the U.S. government. In 2023, the Biden administration added Dillian's companies Intellexa and Cytrox to a block list called the “Entity List.” Once a company is placed on this list, no U.S. company or individual can work with or have a commercial relationship with that company.
“I think this is what made Americans angry,” said the former spyware chief.
Another person who worked in the spyware industry said that Dillian “moves like an elephant in a crystal shop,” suggesting, if not brazen, that Dillian's activities were not hidden.
“In that special space of being a spyware seller, you have to have a lot of balance and care…but he didn't care,” the source said.
At the same time, the person said that he was glad he quit the industry because times had changed.
A third party involved in the spyware industry said the sanctions against Mr. Dillian and his business associate Mr. Hamou should provide a moment of reflection for the entire market.
“If I had to go back into this industry and I didn’t find a very reliable and dedicated clientele; [sanctions] It would be dangerous,” said a third person. “No matter how serious a company is, it can never be 100% sure how its customers will behave and the political developments that may involve them.”
The U.S. government's latest action against spyware creators ahead of this week's sanctions could see the State Department impose travel bans or visa restrictions on anyone involved in facilitating or enabling spyware exploits. It was to announce that there was.
Contact Us Want to know more about spyware providers? You can contact Lorenzo Franceschi-Bicchierai securely from your non-work device on Signal (+1 917 257 1382) or on Telegram, Keybase and Wire @lorenzofb, or by email. You can also contact TechCrunch via SecureDrop.
Previously, in 2021, the US Department of Commerce put Israeli-based spyware maker NSO Group on its blocklist, allowing its tools to be used against journalists, politicians, dissidents, and human rights defenders in several countries, including Hungary. It has been documented that it has been used against Mexico, Poland, Saudi Arabia, Spain. Two years later, in 2023, Cytrox and Intellexa were also listed on the same list as his NSO Group.
It makes sense for the US government to target the founders and executives of these two companies, similar to how Intellexa, NSO Group, and Candiru, another Israeli spyware maker, were placed on the denial list.
But it's unclear whether the people running these companies are concerned.
Dillian could not be reached for comment. Hamm did not respond to requests for comment.