Documents reveal a seedy state-led industryThough I-Soon boasted about its hacking prowess in slick marketing PowerPoint presentations, the real business took place at hotpot parties, late night drinking sessions and poaching wars with competitors, leaked records show. A picture emerges of a company enmeshed in a seedy, sprawling industry that relies heavily on connections to get things done.I-Soon leadership discussed buying gifts and which officials liked red wine. They swapped tips on who was a lightweight, and who could handle their liquor.I-Soon executives paid “introduction fees” for lucrative projects, chat records show, including tens of thousands of RMB (thousands of dollars) to a man who landed them a 285,000 RMB ($40,000) contract with police in Hebei province. To sweeten the deal, I-Soon’s chief operating officer, Chen Cheng, suggested arranging the man a drinking and karaoke session with women.”He likes to touch girls,” Chen wrote.It wasn’t just officials they courted. Competitors, too, were targets of wooing over late night drinking sessions. Some were partners — subcontractors or collaborators on government projects. Others were hated rivals who constantly poached their staff. Often, they were both.One, Chinese cybersecurity giant Qi Anxin, was especially loathed, despite being one of I-Soon’s key investors and business partners.”Qi Anxin’s HR is a green tea bitch who seduces our young men everywhere and has no morals,” COO Chen wrote to Wu, the CEO, using a Chinese internet slur that refers to innocent-looking but ambitious young women.I-Soon also has a complicated relationship with Chengdu 404, a competitor charged by the U.S. Department of Justice for hacking over 100 targets worldwide. They worked with 404 and drank with their executives but lagged on payments to the company and were eventually sued over a software development contract, Chinese court records show.The source of the I-Soon documents is unclear, and executives and Chinese police are investigating. And though Beijing has repeatedly denied involvement in offensive hacking, the leak illustrates I-Soon and other hacking companies’ deep ties with the Chinese state.For example, chat records show China’s Ministry of Public Security gave companies access to proofs of concept of so-called “zero days”, the industry term for a previously unknown software security hole. Zero days are prized because they can be exploited until detected. I-Soon company executives debated how to obtain them. They are regularly discovered at an annual Chinese state-sponsored hacking competition.In other records, executives discussed sponsoring hacking competitions at Chinese universities to scout for new talent.Many of I-Soon’s clients were police in cities across China, a leaked contract list showed. I-Soon scouted for databases they thought would sell well with officers, such as Vietnamese traffic data to the southeast province of Yunnan, or data on exiled Tibetans to the Tibetan regional government.At times, I-Soon hacked on demand. One chat shows two parties discussing a potential “long-term client” interested in data from several government offices related to an unspecified “prime minister.”A Chinese state body, the Chinese Academy of Sciences, also owns a small stake in I-Soon through a Tibetan investment fund, Chinese corporate records show.I-Soon proclaimed their patriotism to win new business. Top executives discussed participating in China’s poverty alleviation scheme — one of Chinese leader Xi Jinping’s signature initiatives — to make connections. I-Soon CEO Wu suggested his COO become a member of Chengdu’s People’s Political Consultative Conference, a government advisory body comprised of scientists, entrepreneurs, and other prominent members of society. And in interviews with state media, Wu quoted Mencius, a Chinese philosopher, casting himself as a scholar concerned with China’s national interest.But despite Wu’s professed patriotism, leaked chat records tell a more complicated story. They depict a competitive man motivated to get rich.”You can’t be Lei Feng,” Wu wrote in private messages, referring to a long-dead Communist worker held up in propaganda for generations as a paragon of selflessness. “If you don’t make money, being famous is useless.”
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