US prosecutors drop case against ex-CIA analyst charged with spying for South Korea
October 19, 2026 5 Comments
UNITED STATES FEDERAL PROSECUTORS have agreed to defer the prosecution of Sue Mi Terry a former Central Intelligence Agency (CIA) analyst and White House National Security Council (NSC) official, who is accused of secretly acting as an unregistered agent of South Korea’s National Intelligence Service (NIS). The deal could terminate the case against Terry in 12 months.
The deferred prosecution agreement was /filed on 13 October. Prior to the deferment, Terry was set to stand trial in a Manhattan federal court on two felony charges of conspiracy to violate the Foreign Agents Registration Act (FARA) and failure to register under FARA.
Born in Seoul and raised in the US state of Virginia, Terry served as a senior CIA analyst during 2001-2008, and as the Director for Korean, Japan, and Oceanic Affairs at the NSC during 2008-2009 under Presidents George W. Bush and Barack Obama. At the time of the indictment, Terry worked as a senior fellow for Korea Studies at the Washington, DC-based Council on Foreign Relations.
The espionage case against Terry dates to July 2024, when she was indicted on charges of acting as an unregistered agent working on behalf of South Korean intelligence. Prosectors alleged that over roughly a decade, Terry received luxury handbags and clothing, upscale meals, and tens of thousands of dollars in research funding from South Korea’s NIS.
In a September 28, 2026, filing opposing Terry’s motion to suppress evidence, prosectors alleged that the money came from the “highest levels” of NIS. They added that while Terry was aware of the support, “she sought to conceal the source of the NIS funds from the Woodrow Wilson Center, where she was then employed”. The prosecutors also publicly named three NIS case officers who purportedly had contact with Terry.
The two-page deferred prosecution agreement (DPA) allows for the prosecution to be suspended for 12 months, after which all charges will be dropped, provided that Terry complies to all terms set out in the DPA. In the DPA, Terry concedes to various charges, including accepting a Bottega Veneta handbag, a Louis Vuitton handbag, and a Dolce & Gabbana coat from South Korean officials, reportedly totaling $9,245. She also acknowledges raising approximately $37,000 for her research work, funded by checks that were issued directly from the South Korean embassy in Washington, DC. Read more of this post
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THE UNITED STATES DEPARTMENT of Justice
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OpenAI engineer accused of planting recording device remains in pre-trial detention
October 22, 2026 by intelNews 4 Comments
Concerns about the engineer’s behavior reportedly started when OpenAI staff discovered a listening device wrapped in toilet paper on 30 September. This prompted an internal investigation, in which OpenAI analyzed the device using its own artificial intelligence (AI) models. The investigation concluded that the device had been installed on or around 28 September. It also determined that the device was highly sophisticated and included advanced encryption, audio monitoring capabilities, as well as a means of transferring intercepted data whilst evading monitoring. Following this discovery, the company referred the case to the FBI.
The affidavit states that Alfozan appears on footage captured on October 5 by a hidden close-circuit surveillance camera at the company’s San Francisco headquarters. The footage shows Alfozan entering a conference room, which he had no authority to access. He then appears to check a device plugged into a television inside the room. The affidavit adds that OpenAI executives frequently use the room for internal leadership meetings, often involving “highly confidential, technical, commercial and strategic information, including proprietary research, product plans, and business development opportunities”.
The complaint also alleges that, prior to installing the device’s, Alfozan used an AI productivity tool to inquire about OpenAI’s buildings, meeting rooms, calendars, and executive locations. It also alleges that a chatbot associated with Alfozan’s spouse—who has not been charged in connection with this case—submitted prompts about building and encrypting an audio recording device.
Alfozan had worked as an engineer at OpenAI for 15 months prior to his termination. According to Al Jazeera, Alfozan’s LinkedIn profile lists earlier roles at Meta and Microsoft. Court filings allege Alfozan had booked one-way flight tickets to Saudi Arabia for himself, his wife, and another relative, scheduled for 12 October. The Saudi national’s connections to the Gulf State’s ruling family are not explicitly known; however, he is allegedly listed as a partner at Raed Ventures, a venture capital firm based in Riyadh. Prince Khalid bin Bader al Saud, a member of the Saudi Royal family, is also a Raed Ventures partner. Read more of this post
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