US Cyber Investors Pledge Spyware is Off Limits - With a Catch

An anonymous reader shares a report: On Monday, the Biden administration announced that six new countries had joined an international coalition to fight the proliferation of commercial spyware, sold by companies such as NSO Group or Intellexa. Now, some investors have announced that they too are committed to fighting spyware. But at least one of those investors, Paladin Capital Group, has previously invested in a company that developed malware, according to a leaked 2021-dated slide deck obtained by TechCrunch, although the firm tells TechCrunch it 'got out' of the firm some time ago.

In the last couple of years, the U.S. government has led an effort to limit or at least restrain the use of spyware across the world by putting surveillance tech makers like NSO Group, Candiru, and Intellexa on blocklists, as well as imposing export controls on those companies and visa restrictions on people involved in the industry. More recently, the government has imposed economic sanctions not only on companies, but also directly on the executive who founded Intellexa. These actions have put others in the spyware industry on alert. In a call with reporters on Monday that TechCrunch attended, a senior Biden administration official said that a representative from Paladin participated in meetings at the White House on March 7, as well as this week in Seoul, where governments gathered for the Summit for Democracy to discuss spyware.

Paladin, one of the biggest investors in cybersecurity startups, and several other venture firms published a set of voluntary investment principles, noting that they would invest in companies that 'enhance the defense, national security, and foreign policy interests of free and open societies.' 'For us, it was an important first step in having an investor outline both recognition that investments should not be going towards companies that are undertaking selling products, and selling to clients that can undermine free and fair societies,' the senior administration official said in the call, where journalists agreed not to quote the officials by name.

Read more of this story at Slashdot.