A Front Company and a Fake Identity: How the U.S. Came to Use Spyware It Was Trying to Kill.

The secret contract — which The New York Times is disclosing for the first time — violates the Biden administration’s public policy, and still appears to be active. The contract, reviewed by The Times, stated that the “United States government” would be the ultimate user of the tool, although it is unclear which government agency authorized the deal and might be using the spyware. It specifically allowed the government to test, evaluate, and even deploy the spyware against targets of its choice in Mexico.

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The secret November 2021 contract used the same American company — designated as “Cleopatra Holdings” but actually a small New Jersey-based government contractor called Riva Networks — that the F.B.I. used two years earlier to purchase Pegasus. Riva’s chief executive used a fake name in signing the 2021 contract and at least one contract Riva executed on behalf of the F.B.I.

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The deal unfolded as the European private equity fund that owns NSO pursued a plan to get U.S. government business by establishing a holding company, Gideon Cyber Systems. The private equity fund’s ultimate goal was to find an American buyer for the company.

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