Sky Global CEO Indicted on Drug Trafficking Charges, Denies Wrongdoing

A US grand jury indicted Sky Global CEO Jean-Francois Eap and former distributor Thomas Herdman for allegedly facilitating drug trafficking via encrypted devices.

Sky Global CEO Charged With Facilitating Narcotics Distribution Through Encrypted Network

A federal grand jury in the Southern District of California has indicted Jean-Francois Eap, CEO of encrypted communications provider Sky Global, and Thomas Herdman, a former distributor of Sky Global devices, on charges of conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO), ZDNet reports.

The US Department of Justice revealed the indictment on Friday. Prosecutors allege that Eap and Herdman "knowingly and intentionally participated" in a criminal network that distributed narcotics — specifically heroin, cocaine, and methamphetamine — by facilitating the sale and servicing of encrypted communications devices. Arrest warrants have been issued for both men, who are said to be located in Vancouver, Canada.

According to the indictment, Sky Global's devices were "specifically designed to prevent law enforcement from actively monitoring the communications between members of transnational criminal organizations involved in drug trafficking and money laundering." The filing further alleges that the company "guarantees that messages stored on its devices can and will be remotely deleted by the company if the device is seized by law enforcement or otherwise compromised."

The DoJ claims Sky Global generated hundreds of millions of dollars in profit by facilitating this criminal activity. Suzanne Turner, FBI Special Agent in Charge of the San Diego Field Office, called the indictment "another major strike against transnational crime." If arrested and convicted, both Eap and Herdman face a maximum penalty of life in prison.

Canada-based Sky Global develops Sky ECC, a subscription-based, end-to-end encrypted messaging application distributed via custom handsets. The charges follow an announcement last week by Europol that law enforcement had broken the encryption of the Sky ECC network and used intercepted client communications to execute a criminal takedown on March 9, resulting in a large number of arrests and the seizure of cash and drugs.

Sky Global had previously denied Europol's claims, attributing the security breach to a "disgruntled" former reseller and alleging that a fake, insecure version of the Sky ECC app had been distributed through the domain skyecc.eu.

Eap published a public statement on Sunday, saying he learned of the US indictment through media reports rather than directly from authorities. He rejected the allegations as false and framed the case as an attack on digital privacy rights.

"Sky Global's technology works for the good of all," Eap said. "It was not created to prevent the police from monitoring criminal organizations; it exists to prevent anyone from monitoring and spying on the global community."

Eap argued that he and his company are being targeted for building tools that protect what he described as "the fundamental right to privacy." He characterized the indictment as an effort by police and government "to vilify anyone who takes a stance against unwarranted surveillance."

"To brand anyone who values privacy and freedom of speech as a criminal is an outrage," Eap added. "We do not condone illegal or unethical behavior by our partners or customers."

The CEO said he intends to spend the coming days working to clear his name.

Source: ZDNet