Barcelona’s Unexpected Rise as a Spyware Startup Hotspot
The Secretive Recruitment of Cybersecurity Talent
In late 2023, an Israeli security researcher received a cryptic LinkedIn message offering “good pay” for work abroad. The opportunity came from a company claiming to be a “legitimate” offensive security startup based in Barcelona, Spain. However, the researcher told TechCrunch that the recruitment process raised red flags:
- Employees used partial names during interviews
- The company location and name were deliberately obscured
- The CTO (Alexey Levin, ex-NSO Group) claimed they only served “legit customers”
The company, later identified as Palm Beach Networks, develops zero-day exploits and spyware implants. Levin allegedly stated they had at least one U.S. government client.
Why Barcelona? The Spyware Industry’s New Home
Barcelona has become an unlikely hub for spyware companies due to:
- Quality of life: Similar climate and culture to Israel
- Tax benefits: Attractive financial incentives for businesses
- Talent pool: Growing cybersecurity ecosystem with 500+ companies
- Regulatory advantages: Easier export controls than Israel post-NSO scandals
“It’s a concerning development if a major European city becomes a spyware hub,” warns Natalia Krapiva of Access Now. “This industry goes hand in hand with corruption and abuse of power.”
The Expanding Spyware Ecosystem
Several companies have established operations in Barcelona:
- Palm Beach Networks/Head and Tail: Linked to former NSO Group employees
- Paradigm Shift: Founded by ex-Variston employees
- Epsilon: Led by Jeremy Fetiveau (ex-L3Harris/Azimuth)
- Unnamed Israeli teams: Developing zero-day exploits
John Scott-Railton of Citizen Lab warns: “If experience is a guide, it’s only a matter of time before this tech is used against Spain’s allies.”
Barcelona’s Broader Tech Appeal
The city offers:
- Lower costs than London/Amsterdam/Berlin
- Beach lifestyle similar to Tel Aviv/Cyprus
- Vibrant startup scene (home to Glovo, Impress, TravelPerk)
- 2,200+ startups in the region
The Shadowy World of Spyware Startups
Palm Beach Networks demonstrates concerning patterns:
- Multiple name changes (Defense Prime → Palm Beach Networks → Head and Tail)
- Overlapping leadership with other spyware ventures
- Vague public-facing descriptions masking surveillance capabilities
The Israeli researcher ultimately declined the offer, concerned about potential future sanctions and ethical implications. “I could get good money elsewhere without worrying who the customers are,” he said.
Image: Evening view of Barcelona’s Sagrada Familia (Credit: Joan Valls/Urbanandsport/NurPhoto/Getty Images)
Article updated with responses from Paradigm Shift and SAFA representatives
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