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NEW: Government hackers breached the iPhones of at least five victims (journalists, politicians, NGO worker) using spyware made by QuaDream, according to Microsoft and Citizen Lab.

A source who used to be in the spyware industry tells us QuaDream has indeed set up a company in Cyprus to skirt export regulations.

The source also confirmed some of the customers that have been reported previously (KSA) and others (Mexico etc).