Human rights groups call for halt to phone-cracking Cellebrite’s share listing
Human rights groups including Access Now have called on the U.S. Securities and Exchange Commission, the Nasdaq and other stakeholders to halt the bid of Israel-based Cellebrite to list its shares on the US exchange until it demonstrates its commitment to safeguarding human rights.
The Israeli digital intelligence firm, according to the open
letter sent by Access Now and other groups, creates technology that is used to
violate human rights across the globe.
The firm, which has come under scrutiny of human rights
groups for its digital forensic technologies, said in April it had entered an
agreement to merge with TWC Tech Holdings II Corp, a publicly traded special
purpose acquisition company (SPAC).
Last year, human rights groups asked the Israeli Defense
Ministry body that monitors exports to immediately halt the sale of
Cellebrite’s phone hacking technology to Belarus, arguing that it should be
subject to the same strict guidelines as military equipment.
“Cellebrite itself has admitted that its products pose risks
to human rights,” the open letter said. “In both a presentation to investors
and a draft registration statement to the SEC, Cellebrite acknowledges that one
of the company’s key risks is that some of its ‘products may be used by
customers in a way that is, or that is perceived to be, incompatible with human
rights’ and that ‘any such perception could adversely affect [its] reputation,
revenue and results of operations.’
“Despite this acknowledgment, Cellebrite continues selling
its products to repressive regimes and enabling detentions, prosecutions, and
harassment of journalists, civil rights activists, dissidents, and minorities
around the world,” the letter said. “Many of these activities were originally
reported by the Committee to Protect Journalists (CPJ) and media outlets, and
are further detailed in Access Now’s report dated May 28, 2021.”
On June 11, US Representative Tom Malinowski issued a number
of recommendations to the SEC, NASDAQ, TWC Tech Holdings II Corp., the SPAC
firm with which Cellebrite is merging, and Cellebrite’s future investors to
decline approval of the firm’s public listing until Cellebrite sufficiently
addresses the human rights risks resulting from its transactions, the letter
said.
It calls on the SEC and the Nasdaq to decline to approve the
paperwork and the listing of the firm until human rights compliance is
demonstrated, on the SPAC shareholders to delay the closing of the merger, and
on investors to hold their funds, for the same reason.
Petah Tikva-based Cellebrite was reportedly the company the
FBI used in 2016 to hack into the iPhone of the San Bernardino shooter after
Apple refused the US government’s request to build a backdoor into its famously
secure operating system.
Cellebrite’s technology does not work remotely. It requires
a specially designed device to be physically connected to the phone being
hacked.
In a text message, Cellbrite said that it was “committed to
safeguarding human rights and has developed robust controls to ensure that our
technology is used appropriately in legally sanctioned investigations.
“Our solutions help every year in millions of investigations
around the globe, in solving severe crimes – from child exploitation, rape and
domestic violence, to anti-terror, human trafficking, along with many others.
Our thousands of global customers, including some of the world leading law
enforcement agencies, are committed to the lawful use of our technology to help
build a safer world.
“We sell our technology only to companies, bodies and
agencies that abide by the terms that govern its proper use as outlined in our
End-User Licensing Agreement (EULA). Customers that do not comply with these
terms no longer receive active product support or have their licenses renewed.
“Cellebrite does not sell to countries sanctioned by the US,
EU, UK or Israeli governments,” Cellbrite’s text message said.
Access Now has offices including in New York, Toronto, Costa
Rica and Tunis, and seeks to provide human-rights focused thought leadership
and evidence-based policy analysis, according to its website. The organization
says it works with regional partners to strengthen human rights globally.
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