Swiss government files criminal complaint over Crypto AG scandal involving CIA
March 3, 2020 2 Comments
Switzerland’s Federal Department of Finance has filed a criminal complaint “against persons unknown” over media reports that a leading Swiss-based cryptological equipment manufacturer was secretly owned by the United States Central Intelligence Agency (CIA).
The complaint relates to Crypto AG, the world’s leading manufacturer of cryptologic equipment during the Cold War, whose clients included over 120 governments around the world. Last month, The Washington Post and the German public broadcaster ZDF appeared to confirm reports that had been circulating since the early 1980s, that Crypto AG was a front for American intelligence. According to the revelations, the CIA and West Germany’s Federal Intelligence Service (BND) secretly purchased the Swiss company in the 1950s and paid off most of its senior executives in order to buy their silence. The secret deal, dubbed Operation RUBICON, allegedly allowed the US and West Germany to spy on the classified government communications of several of their adversaries —and even allies, including Austria, Italy, Spain, Greece, Jordan, Saudi Arabia and the United Arab Emirates.
The revelation about the secret deal has shocked Swiss public opinion and embarrassed the government of a nation that bases its national identity and international reputation on the concept of neutrality. For this reason, the Swiss Federal Department of Finance has filed a criminal complaint about the case. The complaint was announced by the Office of the Swiss Attorney General on Monday, following reports in the Swiss media. It said that it received a criminal complaint by the State Secretariat for Economic Affairs (SECO), which is the part of the Finance Department that authorizes exports of sensitive software or hardware. SECO officials argue that they were deceived into authorizing the export of Crypto AG’s products without realizing they had been compromised by the company’s secret agreement with the CIA and the BND. Accordingly, the secret agreement violates Swiss federal law governing the regulation of exports, SECO officials claim.
The Office of the Attorney General said it would review the criminal complaint and decide whether it warrants criminal proceedings. Meanwhile, a probe into the alleged Crypto AG-CIA-BND conspiracy, which was launched by the Swiss government last month, is already underway, and is expected to conclude in June. The Swiss Federal Assembly (the country’s parliament) is also expected to launch its own investigation into the alleged affair.
► Author: Joseph Fitsanakis | Date: 03 March 2020 | Permalink
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Switzerland is reeling from the shock caused by revelations last week that Crypto AG, the world’s leading manufacturer or cryptologic equipment during the Cold War, whose clients included over 120 governments around the world, was a front company owned by the United States Central Intelligence Agency.
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Chinese cybersecurity firm accuses CIA of 11-year cyberespionage campaign
March 4, 2020 by Ian Allen 1 Comment
The accusation against the CIA comes from Qihoo 360, a prominent cybersecurity firm headquartered in Beijing. On Monday, company published a report of its investigation on its website, written in both Chinese and English. The report identifies the hackers as “the CIA Hacking Group (APT-C-39)”, and says that the group has carried out activities against “China’s critical industries” for at least 11 years.
The report claims that APT-C-39 targets included China’s energy and civilian aviation sectors, Internet service providers, scientific research universities and organizations, and various government agencies —which it does not name. The majority of the hacker group’s targets were located in Beijing, and also in China’s Zhejiang and Guangdong provinces.
According to Qihoo 360, APT-C-39 must be a “state-level hacking organization”, judging by the hacking tools that it used. These tools, such malware named by forensics experts as Grasshopper and Fluxwire, are believed to have been designed by the CIA. They were leaked in 2017 by the international whistleblower website WikiLeaks. American authorities have charged a former CIA programmer, Joshua Schulte, with leaking the malware. Schulte denies the charges.
The Qihoo 360 report also claims that the hours during which APT-C-39 hackers appear to be active correspond to the working hours of the East Coast of the United States. It also suggests that one goal behind the hacking operations against airline industry targets was to access the travel itineraries of senior figures in China’s political and industrial circles.
► Author: Ian Allen | Date: 04 March 2020 | Permalink
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