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5:30 PM ET, Friday, October 6, 2023

The Cipher Brief curates open source information from around the world that impacts national security. Here's a look at today's headlines, broken down by region of the world:  

THE TOP STORIES:

Former U.S. Soldier Arrested for Allegedly Attempting to Pass Information to China.  The U.S. Justice Department announced that a former U.S. Army sergeant was arrested on Friday on charges that he sought to provide classified national defense information to China.  The department said the ex-soldier, Joseph Daniel Schmidt, had access to secret and top secret information while serving in an army intelligence unit from 2015 until 2020.  He is suspected of offering national defense information to the Chinese consulate in Turkey and the Chinese security services after he left the military.  The department added that he allegedly went to Hong Kong in March 2020 to offer classified information and a device that allows for access to secure military computer networks to Chinese intelligence.  He stayed in China until his return to the U.S. on Friday, when he was arrested upon arrival in San Francisco.  Schmidt’s arrest comes two months after two members of the U.S. Navy were also arrested on suspicion of spying for China.  ABC News Reuters South China Morning Post U.S. Department of Justice

Amazon Launches its First Internet Satellites.  Amazon launched its first two internet satellites into orbit on Friday, marking the company’s first step towards building a constellation of internet satellites that is set to compete with SpaceX’s Starlink system.  Amazon confirmed “mission success” in launching the satellites and said they were “precisely” delivered into orbit.  If the mission is successful, Amazon could start sending hundreds more of the satellites into orbit to build its Project Kuiper network of over 3,200 satellites.  SpaceX has over 4,500 Starlink satellites in orbit.  Starlink has been used by Ukraine’s military, and Amazon could potentially plan similar dual-use capabilities for Project Kuiper.  CNN Washington Post 

THE UKRAINE UPDATE:

Ukraine and Russia Exchange Bodies of Fallen Soldiers.  Ukraine’s Coordinating Agency for the Treatment of Prisoners of War said the bodies of 64 Ukrainian service members killed in action were returned to Ukraine in exchange for the remains of Russian military personnel killed in Ukraine on Friday.  The agency said the bodies will be taken to state institutions to undergo forensic exams. The agency said at least 1,896 bodies of Ukrainian service members have been repatriated since the start of the war.  CNN 

Germany’s Rheinmetall Books Major Order for Artillery Ammunition.  Germany’s largest defense company Rheinmetall announced that it booked a large order of 155mm artillery shells in a major deal with the German government in order to help replenish weapon stocks reduced by the Ukraine war.  The order is set to be fulfilled by 2024.  The framework contract for the ammunition will run until 2029 and has a potential order volume worth around $1.35 billion.  Rheinmetall CEO Armin Papperger said in July that the company will increase annual production of artillery rounds from 100,000 to 600,000 in 2024, largely for military assistance for Ukraine.  CNN

U.S. Expels Russian Diplomats in Tit-for-Tat Response.  The U.S. State Department said two Russian diplomats from the embassy in Washington are being expelled in response to Moscow’s expulsion of two U.S. diplomats from the embassy in Moscow last month.  The department said the move aimed to show that Russia’s “harassment” of U.S. diplomats will have consequences.  CNN

U.S. Adds 42 Chinese Entities to Trade Black List for Allegedly Supporting Russian Military.  The U.S. Commerce Department on Friday announced the addition of 42 Chinese companies to an export control list over suspected support for Russia’s military invasion.  The department said the companies were added to the Entity List for allegedly supplying Russia with U.S-originated integrated circuits, including microelectronics that Russia’s military uses for precision guidance systems in missiles and drones.  An additional seven companies from Finland, Germany, India, Turkey, the UAE, and the UK were added to the list.  Reuters

THE CYBER AND TECH RUNDOWN:

Watchdog Warns of China-Style Surveillance on Payment Systems.  The U.S. Consumer Financial Protection Bureau (CFPB) is considering regulatory moves to help protect consumers from excessive surveillance and misuse of their financial data.  Rohit Chopra, director of the CFPB, said he is concerned that the U.S. is headed towards a “consolidated market structure” like the system in China that blurs separation of payments and commerce and encourages “excessive surveillance and even financial censorship.”  He added that to avoid this, CFPB is considering regulations including ordering large U.S. tech firms to report on their use of personal data and private currencies and measures on consumers’ control of their banking data.  He also said the CFPB is also considering the use of legal authorities to directly supervise non-bank financial institutions that offer consumer payment platforms, specifically when these services are provided to large financial institutions.  Reuters

Florida Court Hit by Cyberattack.  Florida’s First Circuit Court announced that it is dealing with an “information technology security event” that is hindering operations and that there is an ongoing investigation into the incident.  The Circuit has had to cancel and reschedule certain proceedings and related operations since Monday.  Officials did not respond to requests for comment on whether the incident was a ransomware attack or if a group claimed responsibility for the cyberattack.  U.S. courts have been increasingly targeted by hackers over the last year.  The Record

ELSEWHERE IN THE WORLD:

India Accuses Chinese Telecom Companies of Funding News Portal Suspected of Spreading Chinese Propaganda.  Indian police formally accused Chinese smartphone manufacturers Xiaomi Corp and Vivo Mobile of helping transfer funds illegally to NewsClick, which is under investigation for spreading Chinese propaganda.  Xiaomi India strongly denied the accusation and Vivo did not respond.  NewsClick said that the allegations were “untenable and bogus.”  The allegations were originally presented by police in a complaint filed on August 17 that alleged a large amount of funds were received indirectly from China to push biased news criticizing Indian policies and projects while defending China’s own policies and programs.  Reuters

NATO Calls for Resumption of Kosovo-Serbia Talks.  The NATO-led peacekeeping force in Kosovo on Friday called on both Kosovo and Serbia to resume negotiations to prevent further violence like the recent shootout between armed Serb gunmen and Kosovar police.  Kosovo Force (KFOR) Commander Maj. Gen. Angelo Michele Ristuccia called for both countries to “refrain from inflammatory and counterproductive rhetoric and help to create the necessary conditions for lasting security in Kosovo and across the region.”  Ristuccia also mentioned that KFOR supported European Union facilitated dialogue to normalize ties between Kosovo and Serbia.  Associated Press 

Aid Group Reports Sudan Artillery Fire Killed 11.  The aid group Doctors Without Borders said on Friday that heavy artillery attacks in Sudan killed at least 11 people and injured 90 others.  The group said the attacks took place in the Kamari neighborhood of Omdurman city on Thursday but did not specify whether Sudan’s army or paramilitary Rapid Support Forces (RSF) was responsible.  Neither Sudan’s military or Rapid Support Forces responded to requests for comment on the matter.  Associated Press

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