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Rogue Security Analyst Tries to Sell Top-Secret iPhone Malware for $50 Million in Cryptocurrency

Rogue security analyst tries to sell top-secret iphone malware for $50 million in cryptocurrency

Rogue Security Analyst Tries to Sell Top-Secret iPhone Malware for $50 Million in Cryptocurrency


Rogue security analyst tries to sell top-secret iphone malware for $50 million in cryptocurrency
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A lead programmer working for NSO Group, the Israeli cybersecurity firm behind the notorious Pegasus iPhone malware has been arrested after a failed attempt to illegally sell the top-secret spyware to an unauthorized party via the dark web in exchange for $50 million worth of cryptocurrency.

A report from the Times of Israel states that the 38-year-old engineer from the Netanya has been indicted by prosecutors at the Tel Aviv District Court on charges of “trying to damage property in a way that would harm national security, theft by an employee, activities to market defense material without a permit, and obstruction and interfering with computer material.”

Although the attempted $50 million sale was unsuccessful, the incident raises a number of questions about the internal security processes of NSO and other private cybersecurity firms whose products like Pegasus could have potentially disastrous and far-reaching consequences if they fall into the wrong hands.

Access to NSO Servers

According to a report from Israeli tech news platform CTech, even though the suspect was aware of the damage that could be caused by leaking Pegasus to non-government entities, he went ahead with his plan to sell the top-secret malware because he was set to lose his job at NSO after violating company policy by connecting an external storage device to the company’s computers after researching to how to do so without being detected on the internet.

The company detected his actions and summoned him to a pre-termination hearing on April 29. Following the hearing, for an unspecified reason, he was permitted to return to his workstation where he connected a storage drive to the company server and downloaded the company’s source code along with additional information that could potentially be used to create a black market version of Pegasus.

His plan was to sell the code on the dark web for $50 million in untraceable anonymous crypto coins – Monero, Zcash and Verge, the indictment reveals – posing as a member of a hacker group that gained access to NSO servers. The proposed buyer however grew suspicious of the suspect’s claims and contacted NSO to inform them that their software was being touted online. Remarkably, until that point, NSO was not aware of the theft.

Following a complaint by NSO, the Israeli police cyber crimes unit arrested the programmer on May 6, and brought him up on a number of serious charges including “attempting to maliciously damage assets used by Israel’s security arms in a way that could jeopardize the country’s security.”

Following his indictment, NSO was at pains to point out that despite the theft, Pegasus has not found its way into the public domain, and no confidential information has been leaked.

A statement released to the press by NSO said in part:

“The company was able to quickly identify the breach, collect evidence, identify the perpetrator, and share its findings with the relevant authorities. The authorities, in turn, responded quickly and effectively, so that within a very short time the former employee was arrested and the stolen property was secured. No (intellectual property) or company materials have been shared with any 3rd party or otherwise leaked, and no customer data or information was compromised.”

It will be recalled that Pegasus attained global notoriety after it was revealed that a number of governments around the world have made use of the malware to spy on activists. Pegasus remains uniquely attractive as a malware because it is the only malware solution that combines complete surveillance of an iOS user’s actions with easy installation, reportedly installing itself via a simple SMS link.

Featured image from Shutterstock.

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Published at Wed, 11 Jul 2018 13:23:54 +0000

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How Exchanges will Plan the Upcoming Bitcoin Fork Segwit2x

With Bitcoin’s Segwit2x fork looming next week it pays to know what the top exchanges are going to do about it. Some are in full support and some are not so welcoming of the new protocol change which will effectively double the block size from 1Mb to 2Mb.

There is essentially a battle raging between the miners and developers of the bitcoin community. The majority of miners are for it at the moment, their adoption of the new software upgrade after block 494,784, or around November 16, is crucial to its overall success. The decisions made by exchanges will affect all of the end users and investors so analyzing their official statements would be a smart move.

One of the most popular exchanges, Coinbase, has stated that they will fully support the fork and the new version of bitcoin. The exchange stated that there would be a split into two versions of bitcoin and currency held on the exchange at the time of the fork will result in the account being credited with the equivalent amount of ‘Bitcoin2x’. It will support trading in both versions of the blockchain but will disable transactions 24 hours before the fork.

Bittrex had yet to make an official statement on their announcement page but they have generally been supportive of previous forks so it is likely that this will continue.

Support at Bitfinex has been very strong, they have even allowed their users to trade futures for the new BT2 coin. The have a lengthy terms and conditions page explaining how the exchange will handle the split: https://www.bitfinex.com/legal/cst/segwit2x

The announcement from Binance was rather vague but did indicate that they would be supporting the hard fork also. “If the hardfork happens, Binance would like to support any meaningful forks. We will decide the coin listing depending on the situation, our priority is to protect our customers funds.”

Cex.io will also be enabling trading in two versions of bitcoin after the fork and have added the following pairs;  B2X/BTC, B2X/USD, B2X/EUR and B2X/GBP. Gdax has a very similar policy to Coinbase and will credit users with bitcoin and equal amount of B2X.

No statement has been made from Bitstamp but considering that they did not support the bitcoin Cash fork it remains to be seen which version they will be running after Segwit2x.

Kraken have also yet to release an official standpoint on the hard fork but they did eventually accept bitcoin Cash so may well do so with B2X.

The post How Exchanges will Plan the Upcoming Bitcoin Fork Segwit2x appeared first on NEWSBTC.