OCCUPIED JERUSALEM: The executive due to take over as CEO of Israeli spyware company NSO Group has quit after the business was blacklisted by the U.S. Commerce Department, the company said on Thursday.

Isaac Benbenisti, who joined the company in August, was named on Oct. 31 as the future replacement for CEO Shalev Hulio, an NSO co-founder who was due to take on new roles as vice chairman and global president. Hulio will stay on as CEO for the time being, and Benbenisti will leave the company.

In a resignation letter, excerpts of which were provided by a spokesperson, Benbenisti wrote to NSO's chairman Asher Levy that "in light of the special circumstances that have arisen" following the U.S. decision, and not being able to carry out his vision for NSO, he "would not be able to assume the position of CEO with the company".

Staffed by veterans of top Israeli military intelligence units, NSO has been trying to defend its reputation after an investigation by 17 media organisations published in July said its Pegasus software had targeted smartphones of journalists, rights activists and government officials in several countries.

Last week the US Commerce Department added NSO to its trade blacklist, saying it sold spyware to foreign governments that used the equipment to target government officials, journalists and others.