The US Department of the Treasury's Office of Foreign Assets Control (OFAC) announced sanctions against five individuals and one entity linked to the Intellexa Consortium, for their involvement "in developing, operating, and distributing commercial spyware technology that presents a significant threat to the national security of the United States," according to a statement released by the Department. 

Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith emphasized that the US "will not tolerate the reckless propagation of disruptive technologies that threatens our national security and undermines the privacy and civil liberties of our citizens."

Today, @USTreasury’s Office of Foreign Assets Control sanctioned 5 individuals and 1 entity associated with the Intellexa Consortium, a complex web of companies that built and commercialized a suite of invasive spyware products. https://t.co/GhWpvSseBo

— Treasury Department (@USTreasury) September 16, 2024

Smith also pledged continued accountability for those involved in exploitative technologies and promoting responsible tech development aligned with international standards.

The Department vowed that the US was "committed to countering the exploitation of Americans’ sensitive data and digital authoritarianism and will use all available tools to counter the misuse of surveillance technology."

Despite the Department's alleged attempt to contain the spyware industry, it makes no mention of the company's Israeli origin being owned by a former Israeli general.

Last year in July, The New York Times reported that Intellexa and another EU-based hacking firm, Cytrox, were sanctioned by the US Commerce Department, the two very same firms that were caught in a political scandal in Greece where government officials have been accused of using the spyware to hack journalists and opposition members.

"Today, the U.S. government added four foreign commercial spyware entities to the Entity List for engaging in activities contrary to the national security or foreign policy interests of the United States," a statement released by the State Department read.

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As per the terms of the blacklist, US firms will no longer be allowed to conduct business with the spyware companies. 

Both are owned and controlled by a former general in the Israeli military intelligence, Tal Dilian, who was forced to retire from the Israeli Occupation Forces in 2003 after an investigation revealed he was enmeshed in funds mismanagement, the report states citing sources. 

He later moved to Cyprus, a well-reputed surveillance and cyberintelligence hub. 

Greek authorities fine Israeli-owned spyware company Intellexa

In 2022, Greek authorities launched an investigation by the country’s spy agency into the use of Intellexa’s primary commercial spyware, Predator.

A second investigation was launched after a New York Times report found that the Greek government had licensed Predator to be exported to at least one African country, Madagascar.

The spying tool was mainly used to target local politicians and journalists. However, a Times report found that the spyware was also used on a US citizen who was then working for Meta while a Greek spy agency had a wiretap on her.

Despite that the firms have been blacklisted, it is uncertain to what extent the sanctions could really affect their companies -- especially because Dilian may be able to purchase critical technology from elsewhere. 

Unlike NSO, which was blacklisted by OFAC in 2021, the firms are not subject to Israeli regulations. A bad reputation on the part of NSO allowed Dilian to take advantage of the situation and promote his product smoothly. 

Dilian remains free to enter and leave "Israel" as he pleases, the report states, noting that his companies have waged an aggressive hunt to recruit top hackers to expand their teams. 

According to four people in the cyber industry, a considerable number of hackers in "Israel" recently received offers to work for Dilian's firms.