Zoom says it’s being probed by SEC, two US attorneys workplaces

Zoom says it’s being probed by SEC, two US attorneys offices

Zoom Video Communications Inc. announced that it has provided information to several US attorneys and regulators regarding interactions with China and other overseas governments, as well as security and privacy issues.

The US Securities and Exchange Commission and two US law firms have been investigating Zoom for months, the San Jose, California-based company said in a blog post and filing on Friday. The videoconferencing company announced legal and regulatory scrutiny on the same day that a former Justice Department employee was accused of assisting China in blocking a remote meeting for worship on the anniversary of the Tiananmen Tiananmen.

China-based worker Xinjiang Jin, also from Julien Jin, was absent on charges of conspiring to censor Chinese dissidents by disrupting the Zoom conference in June. Jin was supposed to be Zoom’s liaison with the Chinese authorities on national security issues, but instead the government and other staff have bid, the prosecutor said. Zoom said it terminated Jin’s employment as part of an internal investigation and had employees suspected of assisting him on vacation pending the investigation.

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The videoconferencing provider also said it received a grand jury subpoena from the U.S. Attorney’s Office for the Eastern District of New York in June requesting information about interactions with foreign governments and political parties, including the Chinese government . The federal prosecutor’s office also asked for details about the company’s storage and access to user data, its privacy policy, and its actions in connection with the Tiananmen meeting that allegedly disrupted Jin.

In July, Zoom received subpoenas from the US Attorney’s Office for the Northern District of California and the SEC. Both searched documents and information on security and data protection issues, such as For example, Zoom’s data encryption, how the company calculates usage metrics, and public disclosures about them. Prosecutors also asked for information about the contact between Zoom employees and Chinese government officials, as well as whether any foreign government ever attempted or succeeded in influencing the company’s policies, practices, or actions with respect to US users. Zoom said it was “fully cooperative” with the requests.

Zoom’s popularity skyrocketed during the coronavirus pandemic. Millions of people have had to stay at home to prevent the spread of Covid-19. Workers, students and families rely on video meeting services to keep in touch with colleagues, teachers and loved ones. As of late October, Zoom said it had 433,700 customers with 10+ employees, compared to 74,100 in the third quarter of fiscal last year. The company’s stock is up 500% that year, closing at $ 406.01 in New York on Friday.

From Nico Grant


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