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NSO Group Blocked From WhatsApp and Must Destroy Code Used to Hack 1,400 Devices

A U.S. federal judge permanently blocked a major spyware vendor from using its technology to hack one of the world’s most widely used encrypted messaging apps.
See Also: What GDPR Means for Cybersecurity
U.S. District for the District of Northern California Judge Phyllis Hamilton permanently enjoined Israeli spyware-maker NSO Group from reverse engineering or decompiling WhatsApp code. A California jury earlier found NSO Group used a zero-day exploit to illegally reverse-engineer WhatsApp in a breach that compromised 1,400 user devices. A spokesperson for the Meta-owned chat app previously called NSO Group a “notorious foreign spyware merchant” and praised the verdict as “an important step forward for privacy and security” (see: Meta Wins $167M Over NSO Spyware Hack).
NSO appealed the ruling in June, arguing that $167 million in punitive damages was excessive and that an injunction would shut down its operations. Hamilton, in her Friday order, reduced the damages to $4 million but upheld the injunction, citing NSO’s alleged role in enabling governments to target dissidents, political opponents and journalists.
“Any business that deals with users’ personal information, and that invests resources into ways to encrypt that personal information, is harmed by the unauthorized access of that personal information,” the judge wrote. “And it is more than just a reputational harm, it’s a business harm.”
The zero-day exploit enabled NSO Group to help government clients target specific users like diplomats, human rights activists and journalists who use the encrypted messaging for work purposes (see: Facebook Sues Spyware Maker Over WhatsApp Exploit).
Despite NSO Group warning the court that a permanent injunction “would put NSO’s entire enterprise at risk” and force it out of business, the judge determined that the move was in the public’s best interest in the U.S. Under the ruling, NSO Group must delete and destroy any coding related to WhatsApp and can no longer target the company.
NSO Group has gone through a difficult financial period over recent years having seen both CEO turnover and in 2021 the U.S. Entity List, an export control regime that requires exporters to obtain a license before selling American technology to the company.
TechCrunch on Oct. 10 reported a consortium of U.S. investors reportedly led by Hollywood producer Robert Simonds agreed to buy NSO Group in a deal valued in the tens of millions of dollars.
