The proposed acquisition would create the biggest credit card company in the US.

LONDON — Lockbit, a notorious cybercrime gang that holds its victims' data for ransom, has been disrupted in a rare international law enforcement operation by Britain’s National Crime Agency, the U.S. Federal Bureau of Investigation, Europol and a coalition of international police agencies, according to a post on the gang’s extortion website on Monday. “This site is now under the control of the National Crime Agency of the UK, working in close cooperation with the FBI and the international law enforcement task force, ‘Operation Cronos,’” the post said. An NCA spokesperson confirmed that the agency had disrupted the gang and said the operation was "ongoing and developing." A representative for Lockbit did not respond to messages from Reuters seeking comment but did post messages on an encrypted messaging app saying it had backup servers not affected by the law enforcement action. The U.S. Department of Justice and the FBI did not immediately respond to requests for comment. The post named other international police organizations from France, Japan, Switzerland, Canada, Australia, Sweden, the Netherlands, Finland and Germany. Lockbit and its affiliates have hacked some of the world’s largest organizations in recent months. The gang makes money by stealing sensitive data and threatening to leak it if victims fail to pay an extortionate ransom. Its affiliates are like-minded criminal groups that are recruited by the group to wage attacks using Lockbit’s digital extortion tools. Ransomware is malicious software that encrypts data. Lockbit makes money by coercing its targets into paying ransom to decrypt or unlock that data with a digital key. Lockbit was discovered in 2020 when its eponymous malicious software was found on Russian-language cybercrime forums, leading some security analysts to believe the gang is based in Russia. The gang has not professed support for any government, however, and no government has formally attributed it to a nation-state. On its now-defunct dark web site, the group said it was “located in the Netherlands, completely apolitical and only interested in money.” “They are the Walmart of ransomware groups, they run it like a business — that’s what makes them different,” said Jon DiMaggio, chief security strategist at Analyst1, a U.S.-based cybersecurity firm. “They are arguably the biggest ransomware crew today.” Officials in the United States, where Lockbit has hit more than 1,700 organizations in nearly every industry from financial services and food to schools, transportation and government departments, have described the group as the world’s top ransomware threat. In November of last year, Lockbit published internal data from Boeing, one of the world's largest defense and space contractors. In early 2023, Britain’s Royal Mail faced severe disruption after an attack by the group. According to vx-underground, a cybersecurity research website, Lockbit said in a statement in Russian and shared on Tox, an encrypted messaging app, that the FBI hit its servers that run on the programming language PHP. The statement, which Reuters could not verify independently, added that it has backup servers without PHP that "are not touched." On X, formerly known as Twitter, vx-underground shared screenshots showing the control panel used by Lockbit's affiliates to launch attacks had been replaced with a message from law enforcement: "We have source code, details of the victims you have attacked, the amount of money extorted, the data stolen, chats, and much, much more," it said. "We may be in touch with you very soon" it added. "Have a nice day." Before it was taken down, Lockbit's website displayed an ever-growing gallery of victim organizations that was updated nearly daily. Next to their names were digital clocks that showed the number of days left to the deadline given to each organization to provide ransom payment. On Monday, Lockbit’s site displayed a similar countdown, but from the law enforcement agencies who hacked the hackers: "Return here for more information at: 11:30 GMT on Tuesday 20th Feb." the post said. Don Smith, vice president of Secureworks, an arm of Dell Technologies, said Lockbit was the most prolific and dominant ransomware operator in a highly competitive underground market. “To put today’s takedown into context, based on leak site data, Lockbit had a 25% share of the ransomware market. Their nearest rival was Blackcat at around 8.5%, and after that it really starts to fragment," Smith said. "Lockbit dwarfed all other groups and today’s action is highly significant."

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WASHINGTON — U.S. lawmakers are raising alarms about what they see as America's failure to compete with China in biotechnology, warning of the risks to U.S. national security and commercial interests. But as the two countries' rivalry expands into the biotech industry, some say that shutting out Chinese companies would only hurt the U.S. Biotechnology promises to revolutionize everyday life, with scientists and researchers using it to make rapid advances in medical treatment, genetic engineering in agriculture and novel biomaterials. Because of its potential, it has caught the attention of both the Chinese and U.S. governments. Bills have been introduced in the House and Senate to bar "foreign adversary biotech companies of concern" from doing business with federally funded medical providers. The bills name four Chinese-owned companies. The Chinese Embassy said those behind the bills have an "ideological bias" and seek to suppress Chinese companies "under false pretexts." It demanded that Chinese companies be given "open, just, and non-discriminatory treatment." The debate over biotechnology is taking place as the Biden administration tries to stabilize the volatile U.S.-China relationship, which has been battered by a range of issues, including a trade war, the COVID-19 pandemic, cybersecurity and militarization in the South China Sea. Critics of the legislation warn that restrictions on Chinese companies would impede advances that could bring a greater good. "In biotech, one cannot maintain competitiveness by walling off others," said Abigail Coplin, an assistant professor at Vassar College who specializes in China's biotech industry. She said she was worried that U.S. policymakers would get too obsessed with the technology's military applications at the cost of hindering efforts to cure disease and feed the world's population. In a letter to senators sponsoring the bill, Rachel King, chief executive officer of the trade association Biotechnology Innovation Organization, said the legislation would "do untold damage to the drug development supply chain both for treatments currently approved and on market as well as for development pipelines decades in the making." But supporters say the legislation is crucial to protecting U.S. interests. The National Security Commission on Emerging Biotechnology, a group created by the U.S. Senate to review the industry, said the bill would help secure the data of the federal government and of American citizens and it would discourage unfair competition from Chinese companies. The commission warned that advancement in biotechnology can result not only in economic benefits but also rapid changes in military capabilities. Much is at stake, said Rep. Mike Gallagher, chair of the House Select Committee on the Chinese Communist Party. Gallagher introduced the House version of the bill and last week led a congressional delegation to Boston to meet with biotech executives. "It's not just a supply chain battle or a national security battle or an economic security battle; I would submit it's a moral and ethical battle," Gallagher said. "Just as the sector advances at a really astronomic pace, the country who wins the race will set the ethical standards around how these technologies are used." He argues that the U.S. must "set the rules of the road" and if not, "we're going to live in a less free, less moral world as a result." Both the United States and China, the world's two largest economies, have identified biotech as a critical national interest. The Biden administration has put forward a "whole-of-government approach" to advance biotechnology and biomanufacturing that is important for health, climate change, energy, food security, agriculture and supply chain resilience. The Chinese government has plans to develop a "national strategic technology force" in biotech, which would be tasked with making breakthroughs and helping China achieve "technological independence," primarily from the U.S. "Both the Chinese government and the Americans have identified biotech as an area important for investment, a sector that presents an opportunity to grow their economy," said Tom Bollyky, the Bloomberg chair in global health at the Council on Foreign Relations. He said any restrictive U.S. measures should be tailored to address military concerns and concerns about genomic data security. "Naturally there's going to be competition, but what's challenging in biotech is that we are talking about human health," Bollyky said. Ray Yip, who founded the U.S. Centers for Disease Control and Prevention office in China, also worries that the rivalry will slow medical advancements. The benefit of coming up with better diagnostics and therapy is beyond any individual country, Yip said, "and will not overshadow the capacity or prestige of the other country." What concerns Anna Puglisi, a senior fellow at Georgetown University's Center for Security and Emerging Technology, is Beijing's lack of transparency and its unfair market practices. "Competition is one thing. Unfair competition is another thing," she said. Puglisi described BGI, a major Chinese biotech company identified in both the House and Senate bills, as "a national champion" that is subsidized and given favored treatment by the state in a system that "blurs private and public as well as civilian and military." "This system creates market distortions and undermines the global norms of science by using researchers and academic and commercial entities to further the goals of the state," Puglisi said. BGI, which has stressed its private ownership, offers genetic testing kits and a popular prenatal screening test to detect Down syndrome and other conditions. U.S. lawmakers say they are concerned such data could end up in the hands of the Chinese government. The Defense Department has listed BGI as a Chinese military company, and the Commerce Department has blacklisted it on human rights grounds, citing a risk that BGI technology might have contributed to surveillance. BGI has rejected the allegations. In raising its concerns about BGI, the National Security Commission on Emerging Biotechnology says the company is required to share data with the Chinese government, has partnered with the Chinese military, and has received considerable Chinese state funding and support. State subsidies have allowed BGI to offer genomic sequencing services at a highly competitive price that is attractive to U.S. researchers, according to the commission. The genomic data, once in the hands of the Chinese government, "represents a strategic asset that has privacy, security, economic, and ethical implications," it said. BGI could not immediately be reached for comment.

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