Blacklisted spyware firm looks for inroads amid war in Gaza

From: POLITICO Influence - Wednesday Nov 15,2023 09:54 pm
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By Hailey Fuchs, John Sakellariadis and Caitlin Oprysko

Presented by CTIA Wireless Foundation

With help from Daniel Lippman

ISRAEL’S NSO GROUP SEES OPENING IN GAZA WAR: Blacklisted Israeli spyware company NSO Group is looking to make inroads with the Biden administration amid the conflict in the Middle East, part of a larger effort to reverse sanctions against the company.

— In a letter filed with the Department of Justice under FARA, a lawyer for NSO Group maintained that — in the wake of the Oct. 7 attacks in Israel — the company was “urgently” requesting to meet with officials to coordinate.

“NSO’s technology is supporting the current global fight against terrorism in any and all forms,” the lawyer, Timothy Dickinson of the firm Paul Hastings, argued. “These efforts squarely align with the Biden-Harris administration’s repeated messages and actions of support for the Israeli government, including from a defense and cybersecurity perspective.” The letter was also forwarded to others at the State Department and on the Hill. It was first reported by The Intercept.

— Multiple reports have alleged that the company’s spyware, Pegasus, has been used for nefarious means, including hacking of journalists, activists and officials. The company is also facing multiple lawsuits in U.S. federal court. In 2021, the Biden administration moved to blacklist the company, who it accused of “engaging in activities that are contrary to the national security or foreign policy interests of the United States.”

— In the wake of that Biden administration decision, the company has enlisted legal and lobbying help in D.C. Those firms include Chartwell Strategy Group, the law firm Paul Hastings, and the law firm Steptoe & Johnson. It has also retained the law firm Pillsbury Winthrop Shaw Pittman in recent years.

— The company has been meeting with lawmakers from both parties since the attack on Oct. 7, according to a person working with the company granted anonymity to discuss private conversations. The person said those conversations have centered around what’s going on in the ground in the region and how NSO Group is assisting Israel.

— When asked whether the company had implemented any new safeguards to address how the Israeli government used its spyware, the person added, “Ultimately the company provides the software, and then the sovereign uses it.” The company has already maintained some safeguards, the person said.

— The lobbying strategy, amid the war in Gaza, thus far appears to be falling flat with the Biden administration. “The U.S. government is not contemplating any changes” to its sanctions policy on NSO group, a senior administration official, granted anonymity to speak openly about the company’s latest pitch, told POLITICO.

— In May, the White House issued an executive order forbidding federal agencies from using commercial spyware that is repeatedly abused to spy on activists, dissidents and members of other marginalized groups.

— One reason NSO Group’s attempt to seize on events in Gaza has sparked criticism from cybersecurity and privacy experts is that the firm continues to be linked to cases in which its clients do just that. As recently as September, their flagship Pegasus spyware was found on the phone of a D.C.-based employee working for a civil society organization, according to researchers at internet privacy watchdog Citizen Lab.

— "Revelations of misuse, specifically of NSO group software, have … continued unabated” since the executive order, the senior administration official said.

— “NSO Group will use every chance it gets to lobby the USG for relief, and it should come as no surprise that the company is now leveraging the war for this purpose,” said Runa Sandvik, who runs a start-up to prevent the hacking of journalists and others. “NSO has for years argued that they are helping governments keep their people safe from terror and crime. But research shows their spyware has been used to target hundreds of members of civil society — some more than once.”

— The person working with NSO Group argued that the implication that it was hoping to improve its standing was “frankly offensive” after the events of Oct. 7. The argument that greater intelligence coordination between the U.S. and Israel would require the Biden administration to reverse the blacklisting of NSO Group, the person added.

— “Obviously, there’s an outcome that’s desired, but it’s not a letter [that says take NSO Group off the list],” the person said. “There’s a need for greater intelligence coordination, and again, like I said, NSO plays a role in that.”

Happy Wednesday and welcome to PI, Send tips: coprysko@politico.com. And be sure to follow me on X, the platform formerly known as Twitter: @caitlinoprysko.

 

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CRYPTO LOBBY REBUTS TERRORISM TIES: The crypto lobby is pushing back against a barrage of criticism from the Hill over the industry’s role in financing terror groups and illicit activity, the subject of an oversight hearing this afternoon and a legislative target of industry critics.

— In a letter to the heads of the Senate Banking Committee and House Financial Services Committee, as well as the House panel’s digital assets subcommittee, nearly four dozen crypto advocates with backgrounds in either national security, intelligence or defense asked to meet with lawmakers to discuss ways the industry can work with Congress in “punishing bad actors and rooting them out of this nascent technology.”

— “We are concerned that recent reporting on Hamas's use of cryptocurrency, which has been grossly overstated, debunked by its source, and partially corrected by its editors, continues to be used to push legislation that would be counterproductive to U.S. national security interests,” they wrote.

— The letter, which was organized by the Blockchain Association, downplays the volume of illicit actors on crypto networks, adding that “some current legislative proposals in Congress would ultimately make the work of law enforcement and national security professionals more difficult” while driving industry players overseas.

FIRST IN PI — PROGRESSIVE GROUPS ASK ACTBLUE TO BOOT SINEMA: Twenty progressive groups in Arizona, including Indivisible Arizona, the Arizona Working Families Party and the AZ Medicare for All Coalition, and a dozen current Arizona Democratic elected officials are calling on ActBlue to remove Sen. Krysten Sinema (I-Ariz.) from the Democratic donation platform, according to a copy of the letter obtained by Daniel.

— Sinema left the Democratic Party last year and if she runs for reelection next year, she would face off against likely Democratic Senate nominee Rep. Ruben Gallego (D-Ariz.), who is already ahead of her in raising money from major Democratic donors.

— “As grassroots organizations and candidates or elected officials who are longtime donors and collaborators to ActBlue, we hope that your organization will stand on the right side of history and remove Sen. Sinema," reads the letter, which is addressed to ActBlue CEO Regina Wallace-Jones. "There must be accountability for her continued obstruction and decision to turn her back on the Arizona voters, organizers, donors, allies, and volunteers who knocked on doors in 100+ degree heat and made calls to get her elected in 2018.”

— The letter also says that because of a procedural vote blocking a raise to the minimum wage and Sinema’s vote against student loan debt relief, she has become “a mouthpiece for the rich and powerful, not the small grassroots donors that inspired what ActBlue is today.”

— An ActBlue spokesperson declined to comment but the platform's policies say that “an independent or third party incumbent that has a proven record of caucusing with Democrats” are allowed to use their platform, which would make Sinema still eligible. Sinema’s office also declined to comment.

AMA BACKS DOWN FROM SINGLE PAYER FIGHT: “Doctors in the American Medical Association who want the powerful physicians’ group to drop its longstanding opposition to a single-payer, government-run health care system backed down from their plan to force the issue in the group’s House of Delegates on Tuesday,” POLITICO’s Daniel Payne reports.

— “Fears of political backlash from Republicans in Congress prompted the advocates of single-payer to change course, according to one of the members of the delegation that led the effort, granted anonymity to discuss private conversations.”

— “A committee of the AMA’s governing body, its House of Delegates, reviewed the resolution and said in its report that passage would jeopardize efforts on Capitol Hill to change how Medicare pays doctors. That concern was shared by AMA staff, who warned delegates the measure could get in the way of Medicare payment reform, according to the delegate who spoke to POLITICO.”

— “Delegates were told AMA lobbyists were closing in on a deal with lawmakers to reform how Medicare pays doctors, the person said, and that their single-payer resolution would get in the way of Republican support of that package,” fears that come amid a blossoming rift with Republicans on the Hill — potentially jeopardizing “a relationship the organization relies on for its members’ pay through Medicare.”

SPOTTED at the Consumer Bankers Association’s Washington Forum and rooftop reception at its headquarters last night, per a tipster: Lindsey Johnson, Kelvin Chen and Sam Whitfield of CBA, former CFPB acting deputy director David Silberman, Dan Smith of the Consumer Data Industry Association, Melissa Baal Guidorizzi and John Coleman of Orrick, Herrington & Suttcliffe LLP, Brian Johnson of Patomak Global Partners, Kari Hall of Paul Hastings, Ian McKendry of U.S. Bank, Stephanie Nye of JPMorgan Chase and Melissa Simmons of Visa.

— And at an open house last night at the Investment Company Institute’s newly renovated offices, per a PI tipster: Eric Pan, John Emling and Erica Richardson of ICI, Reps. Bill Huizenga (R-Mich.), Ron Estes (R-Kan.), Andrew Garbarino (R-N.Y.), Andy Barr (R-Ky.), Will Anderson of the House Financial Services Committee, JP Freire of the House Ways and Means Committee, Stephen Benjamin of the White House, Justin Daly of Daly Consulting, Warren Tryon of Capitol Counsel, Ron Bonjean of ROKK Solutions, Nick O’Boyle of Estes’ office, Scott Eckel of Charles Schwab, Amos Snead of Adfero, Alice Joe of Fidelity, Bob Grohowski of T. Rowe Price, Andy Blocker of Invesco and Tim Cummings of Rep. William Timmons (R-S.C.) office.

 

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Jobs Report

Christina Amestoy is joining Think Big America as communications director. She was most recently a senior campaigns communications adviser at the Democratic Governors Association and is a Steve Sisolak alum.

John Rizzo is now head of public policy communications for Nvidia. He most recently was a senior vice president at CLYDE and is a Biden Treasury, Bob Casey and Chuck Schumer alum.

Marian Dimaano is now director of partnerships at the White House. She most recently was senior manager for PR and communications at Digital Brand Architects.

Maribel Perez Wadsworth has been appointed president and CEO of the Knight Foundation.

Citizens for Responsible Energy Solutions has added Sharone Waldman as director of grants management, Buse Atmaca as partnership coordinator, and Ana Vivas Thomas and Zoya Dhakam as policy analysts.

Graham Owens will become executive director of the Rare Disease Company Coalition. He was most recently regulatory and oversight counsel for the Senate Small Business Committee.

Kevin Walsh is joining the London Stock Exchange Group as director of government relations and regulatory strategy, focusing on technology policy. He was previously with Invariant and is an IBM and Claire McCaskill alum.

Ryan Greenstein is joining the Carter Center in Atlanta as associate director of the mental health program. He was most recently associate director for advocacy for the Global Health Advocacy Incubator’s Overdose Prevention Initiative.

Elevate Government Affairs has hired Allison Nyholm as an executive vice president. She was previously vice president of government affairs at the American Council on Renewable Energy.

TechNet has promoted Carl Holshouser to executive vice president and corporate secretary.

 

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