The New York Times reported on Wednesday that two EU-based hacking firms owned by an Israeli former general 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 reads. 

The move comes against the backdrop of efforts to contain the spyware industry which has in recent years got out of hand. 

The firms in question are Intellexa and Cytrox. 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. 

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Last year, the 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 in light of the fact that 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. 

Read more: Spying on journalists may become allowed in EU