{"id":263376,"date":"2024-06-03T12:00:03","date_gmt":"2024-06-03T11:00:03","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=263376"},"modified":"2024-05-31T05:58:26","modified_gmt":"2024-05-31T04:58:26","slug":"after-pegasus-was-blacklisted-its-ceo-swore-off-spyware-now-hes-the-king-of-israeli-ai","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2024\/06\/after-pegasus-was-blacklisted-its-ceo-swore-off-spyware-now-hes-the-king-of-israeli-ai\/","title":{"rendered":"After Pegasus Was Blacklisted, Its CEO Swore Off Spyware &#8211; Now He\u2019s the King of Israeli AI"},"content":{"rendered":"<div id=\"attachment_263378\" style=\"width: 460px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2024\/05\/NSO-Shalev-Hulio-israel-surveillance.webp\" ><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-263378\" class=\"wp-image-263378\" src=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2024\/05\/NSO-Shalev-Hulio-israel-surveillance-1024x512.webp\" alt=\"\" width=\"450\" height=\"225\" srcset=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2024\/05\/NSO-Shalev-Hulio-israel-surveillance-1024x512.webp 1024w, https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2024\/05\/NSO-Shalev-Hulio-israel-surveillance-300x150.webp 300w, https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2024\/05\/NSO-Shalev-Hulio-israel-surveillance-768x384.webp 768w, https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2024\/05\/NSO-Shalev-Hulio-israel-surveillance-1536x768.webp 1536w, https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2024\/05\/NSO-Shalev-Hulio-israel-surveillance.webp 2000w\" sizes=\"auto, (max-width: 450px) 100vw, 450px\" \/><\/a><p id=\"caption-attachment-263378\" class=\"wp-caption-text\">Illustration: Fei Liu\/The Intercept &#8211; Photo: Ammar Awad\/Reuters<\/p><\/div>\n<blockquote><p><em>Shalev Hulio is remaking his image but is still involved in a web of cybersecurity ventures with his old colleagues from NSO Group.<\/em><\/p><\/blockquote>\n<p><em>23 May 2024 <\/em>&#8211; Shalev Hulio, once dubbed \u201cIsrael\u2019s cyber bad boy,\u201d has been working hard to remake himself. By all appearances, it\u2019s been a big success.<\/p>\n<p>Things were looking dicey a few years ago when his company, the Israeli firm NSO Group, rose to infamy. Its Pegasus spyware had been exposed as enabling <a href=\"https:\/\/www.amnesty.org\/en\/latest\/news\/2022\/03\/the-pegasus-project-how-amnesty-tech-uncovered-the-spyware-scandal-new-video\/\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">human rights abuses<\/a>. Eventually, NSO was blacklisted by the U.S. government, and in August 2022, Hulio resigned as CEO.<\/p>\n<p>In the last two years, however, Hulio has become involved in a web of new cybersecurity ventures<strong>.<\/strong> He is back, it seems, and better than ever.<\/p>\n<p>In November, in a video filmed at the Gaza Strip, Hulio announced his <a target=\"_blank\" href=\"https:\/\/theintercept.com\/2024\/01\/18\/israel-nso-group-shalev-hulio-dream-security\/\" >new startup, Dream Security<\/a>, an AI firm focused on defending critical infrastructure.<\/p>\n<p>In April, according to Israel\u2019s largest newspaper, a co-founder of IntelEye \u2014 a company that monitors the \u201cdark web\u201d \u2014 identified his former NSO colleague Hulio as an investor. (Another IntelEye official later told The Intercept that Hulio isn\u2019t a shareholder but refused to clarify further.)<\/p>\n<blockquote class=\"stylized pull-right\" data-shortcode-type=\"pullquote\" data-pull=\"right\"><p><em><strong>Taking the helm of The Institute is the most recent step in Hulio\u2019s makeover from being a public villain to becoming a cyberhero.<\/strong><\/em><\/p><\/blockquote>\n<p>Now, Hulio is moving his cybersecurity entrepreneurism into a new arena: the academy. This month, he <a href=\"https:\/\/www.themarker.com\/technation\/2024-05-08\/ty-article\/.premium\/0000018f-582a-d6a5-a5ff-da2a0fac0000\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">announced<\/a> the founding of \u201cThe Institute,\u201d a new initiative at Israel\u2019s Ben-Gurion University of the Negev that aims to become an Israeli hub for training and research on artificial intelligence.<\/p>\n<p>Hulio has described his post-NSO career as a move away from \u201coffensive\u201d cybersecurity work. When he launched Dream, Hulio <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-10-12\/former-nso-ceo-ex-austrian-chancellor-start-cybersecurity-firm\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">told<\/a> the press, \u201cWe decided to leave the intelligence side, offensive side if you want, and move to the defensive side.\u201d<\/p>\n<p>Taking the helm of The Institute is the most recent step in Hulio\u2019s makeover from being a public villain to becoming a cyberhero, leading a nation\u2019s technological education. At The Institute\u2019s highly publicized launch he shared a stage with Israeli President Isaac Herzog.<\/p>\n<p>The companies Hulio has been involved in \u2014 founded, led, launched, or reportedly invested in \u2014\u00a0feature the same rotating cast of characters. And from NSO to Dream to IntelEye, there are different, sometimes intersecting missions, but one thing is constant: All three support the Israeli government in its war effort.<\/p>\n<p>Hulio had <a href=\"https:\/\/www.wsj.com\/articles\/ex-ceo-of-nso-group-raises-33-6-million-for-israeli-cyber-startup-ae8e7399\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">bragged<\/a> in November that NSO\u2019s Pegasus software was used to track down Israeli hostages, confirming an October <a href=\"https:\/\/www.haaretz.com\/israel-news\/security-aviation\/2023-10-19\/ty-article\/.premium\/israeli-cyber-arms-and-intelligence-firms-like-nso-aiding-israeli-efforts\/0000018b-4813-de3d-a58f-c87b7d950000?v=1698415601171\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">report<\/a>. Meanwhile, Hulio announced <a target=\"_blank\" href=\"https:\/\/theintercept.com\/2024\/01\/18\/israel-nso-group-shalev-hulio-dream-security\/\" >Dream\u2019s founding<\/a> one month after Hamas\u2019s attack on the Gaza border to show Israel\u2019s resilience and help the government.<\/p>\n<p>IntelEye is involved in direct, offensive intelligence work. At the request of the Israeli government, the company reportedly uncovered information identifying a pair of Palestinian brothers and shutting down Hamas propaganda \u2014 leading to the killing of one brother and a police raid on the other.<\/p>\n<p>Exactly what resulted from IntelEye\u2019s work, however, is the subject of conflicting accounts. This much is obvious: The company is in the high-stakes cybersurveillance business.<\/p>\n<p>\u201cWe are continuing to monitor and search for terrorist elements that could threaten the State of Israel,\u201d NSO veteran and IntelEye co-founder Ziv Haba told Israel Hayom after his company found the Palestinian brothers. \u201cThe surveillance is extremely close, closer than you can imagine.\u201d<\/p>\n<h2 id=\"h-the-institute\" class=\"wp-block-heading\">\u201cThe Institute\u201d<\/h2>\n<p>The launch of The Institute at Ben-Gurion University was itself marked by confusion. An article in the <a href=\"https:\/\/web.archive.org\/web\/20240508174830\/https:\/www.jpost.com\/israel-news\/article-800457\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">Jerusalem Post<\/a> announcing the initiative described it as a <a href=\"https:\/\/www.jpost.com\/israel-news\/article-800457\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">partnership<\/a> with the Israel Defense Forces\u2019 elite cyberspying unit, known as 8200. NSO\u2019s founders \u2014 including Hulio \u2014 and many of its employees are veterans of 8200.<\/p>\n<p>Days after the initial article ran, however, all of its references to 8200 were scrubbed without any notice.<\/p>\n<p>An IDF spokesperson told The Intercept, \u201cThe IDF in general and Unit 8200 in particular do not take part in the aforementioned program.\u201d (Shmuel Dovrat, a spokesperson for Ben-Gurion University, said The Institute had not been in touch with the Jerusalem Post after the initial publication, but said, \u201cI\u2019m glad that they changed it because of the wrong information.\u201d)<\/p>\n<p>According to a press release, The Institute will bring together AI luminaries and run training programs and research, with Hulio and other Dream employees among its leaders. In the coming year, The Institute\u2019s research laboratories will strengthen Israel\u2019s hand in the tech world by collaborating with actors across the industry, according to a <a href=\"https:\/\/techround.co.uk\/news\/ben-gurion-university-negev-institute\/\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">report<\/a> in a U.K. tech news site.<\/p>\n<p>\u201cThrough hard work born out of love and commitment to the state of Israel, we have built a team of the best entrepreneurs, investors and leading companies in the world to help Israel become a global leader in artificial intelligence,\u201d journalist Sivan Cohen Saban, The Institute\u2019s CEO, said at the launch event on May 8.<\/p>\n<p>On hand at the launch, according to coverage, were officials from global firms like Microsoft and General Motors, as well as top-tier Israeli politicians, like Herzog, the president. (A spokesperson for GM told The Intercept they could not confirm the company\u2019s attendance.)<\/p>\n<p>Herzog said The Institute would help fight Israel\u2019s isolation amid the Gaza war. \u201cHistory is being made here today,\u201d he <a href=\"https:\/\/www.youtube.com\/watch?v=zudhZ1Bc4Uw\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">said<\/a> at the launch, in remarks later posted to YouTube in a promotional video. \u201cThere are countries that want to sever a relationship with us and only because of you, they don\u2019t do it.\u201d<\/p>\n<p><iframe loading=\"lazy\" title=\"Group 11 Launches The Institute in Israel\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/zudhZ1Bc4Uw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>At The Institute, Hulio is joined in leadership by Dovi Frances, co-founder of the U.S.-based venture capital firm Group 11. Marking its launch, Frances, who also led<a target=\"_blank\" href=\"https:\/\/theintercept.com\/2024\/01\/18\/israel-nso-group-shalev-hulio-dream-security\/\" > funding pushes <\/a>for Dream Security, wrote on <a href=\"https:\/\/www.linkedin.com\/feed\/update\/urn:li:activity:7193835122796683264\/\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">LinkedIn<\/a>: \u201cA historic day.\u201d<\/p>\n<p>\u201cDREAM is proud to be in the forefront of AI technologies and take part in \u2018The Institute,\u2019\u201d Tal Veksler, a spokesperson for the company, told The Intercept.<\/p>\n<p>The trainings and other programs offered by The Institute will be run by employees from Dream Security and other leading Israeli tech firms. Among them are Tomer Simon and Alon Haimovich, chief scientist and general manager at Microsoft in Israel, and Nati Amsterdam, Israel\u2019s lead at Nvidia, a California-based giant of the artificial intelligence world.<\/p>\n<p>Like politicians on hand for the launch, Saban, the CEO, linked the founding of The Institute to the October 7 attack on Israel. \u201cAlong with the concern for our soldiers, our abductees, the bereaved families and the situation in the country,\u201d she said in a <a href=\"https:\/\/twitter.com\/sivanhakolkalul\/status\/1788071137634554317\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">post<\/a> on X, \u201cwe decided to do this.\u201d<\/p>\n<h2 id=\"h-the-deep-dark-web\" class=\"wp-block-heading\"><strong>\u201cThe Deep, Dark Web\u201d<\/strong><\/h2>\n<p>At The Institute\u2019s launch, Hulio was not the only NSO veteran present. So was Haba, co-founder of IntelEye, the firm that claims to plumb the depths of the dark web. Haba took part in a panel, <a href=\"https:\/\/www.linkedin.com\/feed\/update\/urn:li:activity:7193924127068475394\/\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">according<\/a> to his company\u2019s LinkedIn profile, sitting alongside Hulio for a discussion on AI cyberattacks.<\/p>\n<p>Hulio and Haba had worked together at NSO until August 2022, when Hulio stepped down. The next month, while still at NSO, Haba was already working on the nascent firm IntelEye, according to social media posts for an event he participated in. (IntelEye would officially launch in June 2023.)<\/p>\n<p>According to an article in <a href=\"https:\/\/www.israelhayom.com\/2024\/04\/09\/israeli-company-helps-takes-down-hamas-propaganda-machine-online\/\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">Israel Hayom<\/a> last month, Haba said that both Hulio and Frances, Hulio\u2019s Dream business partner, are investors in IntelEye.<\/p>\n<p>In response to a request for comment about Hulio\u2019s relationship to IntelEye, company co-founder Maor Sellek, another NSO veteran, said, \u201cShalev does not hold any shares in the company.\u201d Sellek declined to explain why Haba confirmed to Israel Hayom that Hulio is an \u201cinvestor.\u201d<\/p>\n<p>IntelEye\u2019s participation in Israel\u2019s war effort made headlines. Local media reported on the suspenseful cyber-takedown of Mustafa and Mohammed Ayyash, the two Palestinian brothers alleged to have run the Gaza Now Telegram channel. The company\u2019s work, according to Israel Hayom, led to the \u201ccoordinated transcontinental effort by government agencies\u201d to shut down the channel.<\/p>\n<p>Sellek, in his emails to The Intercept, said IntelEye works in \u201cassisting police forces and law enforcement agencies in Israel and around the world.\u201d He said the company \u201chelped Law enforcement agencies locate the operators of the Hamas organization\u2019s Telegram channel \u2018Gaza Now.\u2019\u201d<\/p>\n<p><a href=\"https:\/\/dfrlab.org\/2023\/10\/12\/in-israel-hamas-conflict-social-media-become-tools-of-propaganda-and-disinformation\/\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">Described<\/a> as \u201cHamas-aligned\u201d by the Atlantic Council\u2019s Digital Forensic Research Lab, the Gaza Now channel <a href=\"https:\/\/www.aljazeera.com\/news\/2023\/11\/3\/telegram-restricts-access-to-hamas-channels-on-google-apple-stores\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">went<\/a> from having 340,000 subscribers to nearly 1.9 million after October 7. The U.S. Treasury Department <a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/jy2213\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">accused<\/a> the channel and its founders of fundraising for Hamas, levying sanctions.<\/p>\n<p>In Israel Hayom, IntelEye officials claimed they revealed the identities of the channel\u2019s leaders, the Ayyash brothers, and tracked them down in Austria and Gaza. Mustafa ended up under investigation by Austrian police, and Mohammed was reportedly killed in Gaza.<\/p>\n<p>The brothers had reportedly been found by tracking their cryptocurrency use and online habits. Privacy experts pointed out that if this information was already fairly public, it would not have been hard to track. \u201cAll this information can have digital breadcrumbs,\u201d said Elies Campo, a digital security researcher who previously worked with Telegram and WhatsApp.<\/p>\n<p>As the Israelis and Austrians caught up with the alleged Gaza Now creators, some sort of misidentification appears to have occurred, with the United Nations saying the wrong Ayyash brother had been killed \u2014 Mustafa, it turned out, was still alive in Austria \u2014 and then going on to <a href=\"https:\/\/reliefweb.int\/report\/occupied-palestinian-territory\/un-human-rights-office-opt-killings-journalists-and-their-family-members-gaza-enar\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">correct<\/a> that error with a note about the Ayyashs\u2019 relationship that conflicts with all other accounts.<\/p>\n<p>Mustafa, it turned out, had not even been in Gaza. Even as the U.N. initially reported his death, Mustafa <a href=\"https:\/\/twitter.com\/mostafaayyach\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">continued<\/a> to post on X from his home in Austria. In March, the U.S. and U.K. imposed <a href=\"https:\/\/ofac.treasury.gov\/recent-actions\/20240327\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">sanctions<\/a> on him and the Gaza Now channel. Then, in Israel Hayom, the article about IntelEye claimed that Mustafa had been arrested.<\/p>\n<p>The Israel Hayom article questions how the Austrian government found Ayyash. The report\u00a0notes that \u201cIntelEye investors \u2014 Shalev Hulio and Dovi Francis \u2014 have ties to a former Austrian chancellor through another company.\u201d Former Austrian Chancellor Sebastian Kurz is a co-founder of Dream. A controversial political figure, Kurz resigned from office amid a corruption probe and was recently <a href=\"https:\/\/www.thestar.com\/news\/world\/europe\/former-austrian-leader-sebastian-kurz-convicted-of-false-statements-given-suspended-sentence\/article_99b3d1a8-7fba-5ee2-8b4b-916957cc79ac.html\"  target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"targetBlankDescription\">convicted<\/a> of making false statements to a parliamentary inquiry into separate allegations of corruption and given an eight-month suspended statement. (A spokesperson for Dream Security said that the company had \u201cNO relationship whatsoever\u201d to other companies or technologies in this article. Kurz did not respond to a request for comment.)<\/p>\n<div class=\"promote-related-post\">\n<blockquote>\n<p class=\"promote-related-post__eyebrow\"><em><strong>Related: <a target=\"_blank\" href=\"https:\/\/theintercept.com\/2024\/01\/18\/israel-nso-group-shalev-hulio-dream-security\/\" >In Video From Gaza, Former CEO of Pegasus Spyware Firm Announces Millions for New Venture<\/a><\/strong><\/em><\/p>\n<\/blockquote>\n<\/div>\n<p>On exactly how Austrian authorities got the information about the Ayyash brothers, according to Israel Hayom, the people involved remained \u201ctight-lipped.\u201d<\/p>\n<p>Yet there was never an arrest, authorities said. The Linz public prosecutor\u2019s office in Austria told The Intercept that Mustafa was not arrested or restricted in his movement. His home had been raided, and documents and devices were seized for analysis. The office, which said it had no contact with the foreign authorities, told The Intercept that Mustafa is under investigation for terror financing. (Mustafa has posted at length on social media denouncing the police raid and declaring his innocence.)<\/p>\n<p>For its part, an Austrian Ministry of the Interior spokesperson said they are \u201cin contact with international partners\u201d but declined to answer questions about whether the Israelis had provided information.<\/p>\n<p>Israel Hayom claimed that Gaza Now\u2019s Telegram and WhatsApp channels were shut down and \u201cdramatically impaired.\u201d Both, however, remain up and running, with hundreds of thousands of followers. (Telegram did not respond to a request for comment.)<\/p>\n<p>\u201cWe understand there were good people involved who helped prevent \u2018Gaza Now\u2019 from spreading poison and hatred,\u201d Haba told Israel Hayom. Of Hulio and Frances, he added, \u201cThey are super Zionists who want what\u2019s best for Israel.\u201d<\/p>\n<p><a target=\"_blank\" href=\"https:\/\/theintercept.com\/2024\/05\/23\/israel-spyware-pegasus-shalev-hulio-ai-inteleye\/?utm_medium=email&amp;utm_source=The%20Intercept%20Newsletter\" >Go to Original &#8211; theintercept.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>23 May 2024 &#8211; Shalev Hulio is remaking his image but is still involved in a web of cybersecurity ventures with his old colleagues from NSO Group. <\/p>\n","protected":false},"author":4,"featured_media":263378,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3078],"tags":[1733,550,88,2608,1109,911],"class_list":["post-263376","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence-ai","tag-artificial-intelligence-ai","tag-corruption","tag-israel","tag-nso","tag-spying","tag-surveillance"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/263376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=263376"}],"version-history":[{"count":1,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/263376\/revisions"}],"predecessor-version":[{"id":263379,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/263376\/revisions\/263379"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media\/263378"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=263376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=263376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=263376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}