Kaspersky to shutter US operations after its software is banned by Commerce Department, citing risk

NEW YORK — Cybersecurity company Kaspersky says it is ceasing all of its operations in the United States, just weeks after the Commerce Department the use of the company’s software is prohibited in the country.

Kaspersky will “gradually wind down” its U.S. operations starting July 20, the Moscow-based company said in a statement. Positions in the U.S. will also be cut, the company said, without immediately confirming how many employees would be laid off.

“Kaspersky has been operating in the U.S. for nearly 20 years, contributing to the country’s strategic cybersecurity goals by protecting organizations and individuals in the country from ever-evolving cyberthreats,” Kaspersky said. “The company has carefully examined and evaluated the impact of U.S. regulatory requirements and has made this sad and difficult decision, as business opportunities in the country are no longer viable.”

Last month, the Commerce Department announced a ban on the sale of Kaspersky software in the U.S., arguing that the company’s Russian connections pose an “unnecessary or unacceptable risk to U.S. national security or national security.”

Aside from Kaspersky’s obligation to comply with Russian law, its software could be misused to identify sensitive data of U.S. citizens and make it available to Russian government actors, the department said in a statement. decision dated June 14.

Kaspersky has strongly denied that it is a security risk. In a report dated June 21 response to the decision of the Ministry of CommerceThe company said it cannot intentionally obtain sensitive data from Americans and that its offices and employees in Russia have access only to aggregated or statistical data that cannot be attributed to any specific individual.

The company also argued that the government based its decision on the “geopolitical climate and theoretical concerns” rather than independently verifying the risk. Kaspersky said the U.S. decision would benefit cybercriminals but also reduce consumer choice.

The department said it had considered Kaspersky’s objections to the initial findings of the investigation but found the decision to ban the software was “well-founded”.

Kaspersky boasts one of the world’s most popular consumer antivirus products and a research arm widely respected for routinely exposing elite hacking rings. In the company’s announcement this week, Kaspersky said its “business remains resilient” and that its priority to “protect our customers in every country from cyberthreats” remained unchanged.

Journalist Kim Zetter first reported the news that the company would shut down its US operations on Monday.