German spy services had foreknowledge of Wagner mutiny, report claims

July 11, 2023 by 1 Comment

BND GermanyCONTRARY TO EARLIER CLAIMS that the German intelligence agencies failed to anticipate last month’s showdown between PMC Wagner and the Kremlin, German intelligence did in fact have foreknowledge of the mercenary group’s uprising, a new investigative report has concluded. The report further claims that German intelligence had unique and real-time insights into the negotiations between Wagner PMC leader Yevgeny Prigozhin and Belarussian President Aleksandr Lukashenko, who intervened in the dispute.

In the days following the June 23 mutiny by soldiers of the Russian private military firm Wagner Group, German intelligence agencies were publicly criticized for allegedly failing to warn Berlin about the unprecedented incident. Specifically, it was claimed that Germany’s primary foreign intelligence agency, the Federal Intelligence Service (BND), did not issue an actual warning about the mutiny until Saturday —a full 12 hours after the first clashes had erupted between Wagner mercenaries and forces loyal to the Russian Ministry of Defense.

Much of the criticism came from the ranks of the center-left German Social Democratic Party (SPD), which is the primary political party behind the government of German Chancellor Olaf Scholz. However, criticism also came from the Green Party, which supports Scholz’s administration, and the liberal center-right Free Democratic Party (FDP), which also supports Scholz’s government. The criticism intensified after June 28, when, during a live television interview, Chancellor Scholz appeared to confirm speculation that the BND had left his administration in the dark about the Wagner mutiny until it was too late.

Late last week, however, a joint investigation by two of Germany’s most respected public television broadcasters, the Hamburg-based NDR and the Cologne-based WDR, concluded that the BND had been far more informed about the Wagner mutiny than its critics have claimed. The investigation concluded that, not only did the BND have foreknowledge of the mutiny nearly a week before it materialized, but that it was able to listen-in to the frantic telephone conversations between Prigozhin and Belarussian President Lukashenko, as the latter tried to dissuade the Wagner leader from storming the Russian capital with his heavily armed band of mercenaries.

According to the NDR-WDR report, the BND had been able to hack into Wagner’s internal communications system up for over a year. However, its operation was betrayed by “Carsten L.”, a German intelligence officer who was arrested late last year for spying for Russia. However, the German spy service was able to continue to monitor the internal affairs of Wagner through other sources and had access to channels of information within Wagner in the months leading up to the mutiny. Thus, according to the report, the BND had “vague indications of an imminent uprising by Wagner” about a week prior to June 23.

However, the agency was unsuccessful in verifying these indications through other sources, including its foreign counterpart agencies. For this reason, it chose not to notify the German Chancellery in concrete terms.

Nevertheless, the BND did issue a warning on Friday evening, a few hours before the Wagner mutiny began. The warning was issued a full day prior to the takeover of Wagner’s armed takeover of the Russian armed forces’ operational headquarters in Rostov, which occurred on Saturday. The two state broadcasters reportedly reached out to the BND for confirmation of the report’s findings. However, a BND spokesperson declined to comment on the matter, saying simply that the BND “generally does not comment publicly on matters relating to intelligence findings or operations”.

► Author: Joseph Fitsanakis | Date: 11 July 2023 | Permalink

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Comment: Is Germany’s external spy agency a liability for Europe?

February 6, 2023 by 3 Comments

BND GermanyGERMANY’S EXTERNAL INTELLIGENCE AGENCY, the Federal Intelligence Service (BND), constitutes a liability for Europe’s security and is in desperate need of a drastic and immediate overhaul. That is the conclusion of a blunt editorial penned last week by James Crisp, the Brussels-based Europe editor of Britain’s Daily Telegraph newspaper.

Founded in the early stages of the Cold War under American tutelage, the BND operated for several decades on the frontlines of the existential clash between the United States and the Soviet Union. Deservedly, the agency received strong criticism about the Nazi past of some of its senior officials in the early days. Yet, like West Germany as a whole, by the 1970s it had largely managed to democratize its institutional structure and practices.

Crisp argues, however, that the BND, once one of Europe’s most important intelligence agencies, has been “hollowed out since the Cold War” and is today viewed by its European counterparts as “complacent and arrogant”. Consequently, the string of embarrassments that the BND has suffered lately, culminating in the discovery of an alleged Russian spy in its ranks, is hardly coincidental, according to Crisp. Even this recent discovery appears to have occurred only after the BND was tipped off by an allied intelligence agency.

The German spy agency has not fared much better in the American-led war in Afghanistan, or during the latest phase of the Russo-Ukrainian war. Unlike the American intelligence agencies, the BND did not subscribe to the view that Moscow would invade its neighbor to the west. Bruno Kahl, the agency’s president, was actually in Ukraine for consultations when Russian tanks began to head toward Kyiv. In what has rightly been described as a humiliation, Kahl was trapped inside Ukraine and had to be smuggled out of the country by a German special forces unit, just as Russian bombs began falling on the Ukrainian capital.

How does one account for the current state of the BND? To some extent, the spy agency’s culture has been shaped by that of the broader postwar German state, which has gone out of its way to reconcile with Russia. Successive German administrations have viewed their rapprochement with Moscow as a cornerstone of Europe’s security trajectory. Consequently, it can be said that Berlin has a history of underestimating the security threat posed by Russia. Read more of this post

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Germany arrests alleged collaborator of intelligence officer who spied for Russia

January 31, 2023 by 1 Comment

BND GermanyTHE GERMAN GOVERNMENT ANNOUNCED last week the arrest of a man believed to have acted as a courier between Russian intelligence and another German spy, who was arrested in December and is awaiting trial. The new arrest is bound to attract even more international attention to this unfolding case of espionage, whose urgency has reportedly alarmed Western intelligence services.

On December 22, German authorities arrested a senior German intelligence official, who has been charged with treason and remains in custody. The official, named only as “Carsten L.”, in compliance with Germany’s strict privacy laws, worked in the signals intelligence (SIGINT) wing of the Federal Intelligence Service (BND). As Germany’s foreign intelligence agency, the BND is tasked with collecting intelligence on foreign targets, a mission that makes it broadly equivalent to the United States Central Intelligence Agency (CIA).

As intelNews reported earlier this month, Carsten L.’s seniority within the BND allowed him to access several compartmentalized areas of information, including secrets shared with the BND by other Western intelligence agencies. For this reason, it was reported that some Western intelligence officials were “most incensed” with this case. One source reported that British intelligence leaders were “considering whether they will continue to provide the BND with their most sensitive information”.

Now a second arrest has come to arguably add to the gravity of this case. On January 22, the German Federal Criminal Police Office announced the arrest of “Arthur E.”, who was captured at the Munich International Airport. Apparently, Arthur E. is a German citizen who has German-Russian background. According to the press release issued by the German government, Arthur E. was arrested through a collaborative effort between the BND and the United States Federal Bureau of Investigation (FBI). Apparently, the FBI became suspicious when Arthur E. attempted to frantically leave the United States after Carsten L.’s arrest. Read more of this post

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Western intelligence agencies alarmed by arrest of Russian spy in Germany

January 10, 2023 by 4 Comments

BND GermanyWESTERN INTELLIGENCE AGENCIES HAVE been alarmed by the arrest of a senior German intelligence official, who has been charged with spying for Russia, according to an expert in German intelligence. On December 22, the German government announced the arrest of a senior officer in the signals intelligence (SIGINT) wing of the Federal Intelligence Service (BND). As Germany’s foreign intelligence agency, the BND is tasked with collecting intelligence on foreign targets, a mission that makes it broadly equivalent to the United States Central Intelligence Agency.

The official, named only as “Carsten L.”, in compliance with Germany’s strict privacy laws, has been charged with “high treason” and is currently awaiting trial. When announcing his arrest, German officials said they were tipped by a foreign intelligence agency that detected a document from the BND’s internal files in the possession of a Russian spy agency. The identity of the intelligence agency that provided the tip is among several important details about the case that remain unknown for the time being. Among them are the duration of Carsten L.’s alleged espionage for Moscow, as well as his motives.

Some reports suggest that Carsten L. may have been blackmailed by the Russians as a result of a kompromat. It has also been reported that the alleged spy was found to be in possession of material relating to the Alternative for Germany (AfD), a far-right party known for its friendly stance toward the Kremlin. But such reports are largely speculative. No information about Carsten L.’s motives has been released by the office of the German prosecutor. It is clear, however, that at least some of the information that Carsten L. gave the Russian government relates to the ongoing war in Ukraine.

Additionally, the suspect’s seniority within the BND allowed him to access several compartmentalized areas of information, including secrets shared with the BND by other Western intelligence agencies. These almost certainly include the United States Central Intelligence Agency and National Security Agency, as well as a host of British intelligence agencies. On Monday, British newspaper The Telegraph quoted German intelligence expert, Erich Schmidt-Eenboom, who said that British intelligence officials were “most incensed” with the case. He added that British intelligence leaders were “considering whether they will continue to provide the BND with their most sensitive information”. The German expert concluded that the Carsten L. case may have “deep implications for future cooperation between the BND and other Western spy agencies”.

► Author: Joseph Fitsanakis | Date: 10 January 2023 | Permalink

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West German intelligence infiltrated Adolf Eichmann trial in Israel, documents show

May 16, 2022 by 2 Comments

BND GermanyWEST GERMAN SPIES INFILTRATED the trial of Adolf Eichmann, one of the architects of the Holocaust, in order to limit its damage on the reputation of senior West German politicians who had a Nazi past. Eichmann was the lead author of the system of mass deportation of Jews from ghettos in Nazi-occupied Europe to extermination camps, where millions of them were brutally killed. In 1960, after years of hiding, he was captured in Argentina by agents of the Mossad, Israel’s covert-action agency, and secretly transported to Israel, where he was put to trial and eventually hanged.

Since 2011, new files on the West German response to Eichmann’s abduction and trial have been uncovered by the Independent Commission of Historians to Research the History of the Federal Intelligence Service, 1945-1968. The Independent Commission consists of professional historians, who have been granted near-complete access into the archives of Germany’s Federal Intelligence Service (BND). Known as Bundesnachrichtendienst, the BND conducts foreign intelligence, making it Germany’s equivalent of the United States Central Intelligence Agency. The project has been praised as a rare case of openness and transparency in historical research into the activities and operations of a still-functioning intelligence agency.

Led by Professor Klaus-Dietmar Henke, the Independent Commission has published 15 volumes of research on the BND. The latest release concerns (among other things) Hans Globke, a senior official in Germany’s Nazi-era Ministry of the Interior, who was eventually appointed to the Office for Jewish Affairs. From that post, Globke helped draft the legislation, known as the Nuremberg Race Laws of 1935. These laws gave legal sanctuary to the exclusion of Germany’s Jewish population from political, commercial and other social activity. The same laws were eventually used to confiscate assets belonging to Jewish German citizens.

After the war, Globke closely aligned himself with the British forces and became testified as a witness in the prosecution of senior Nazi war criminals. He rebuilt his political career, initially on the local level, and eventually as Chief of Staff to the Office of the Chancellor of West Germany. He also served as West Germany’s Secretary of State, promoting a pro-Atlanticist foreign policy that closely aligned Western Germany with the United States.

According to the latest release by the Independent Commission, Globke tasked the BND with infiltrating Eichmann’s trial, in order to limit the details exposed about the Nazi government during the trial proceedings. The primary goal of the operation, according to the new information, was to prevent even the mention of Globke’s name during Eichmann’s trial. If that was not achieved, the aim was to protect Globke’s reputation and shield the public from details about his Nazi past, especially relating to the Holocaust.

When asked about the revelation, a spokesperson for the BND refused to comment on it, saying only that “the draft results of the independent historical commission speak for themselves”. A spokesperson for the German federal government appeared to reject a call to withdraw a number of civilian medals and other honors that Globke was bestowed prior to his death. According to the spokesperson, German law does not have provisions for “posthumous withdrawal” of awards.

► Author: Joseph Fitsanakis | Date: 16 May 2022 | Permalink

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German spy services face criticism for failing to anticipate swift Taliban victory

August 20, 2021 by 2 Comments

BND Germany

THE PRINCIPAL EXTERNAL INTELLIGENCE service of Germany, known as the Federal Intelligence Service, or BND, is facing growing criticism for allegedly failing to anticipate the swift ascendance of the Taliban in Afghanistan. Critics from every political faction have described the situation in Afghanistan as an “impending disaster” for German interests, and have questioned the BND’s effectiveness and competence.

In a statement to the Bundestag this past June, Germany’s Minister of Foreign Affairs, Heiko Maas, insisted that it was “inconceivable” that the Taliban “would, within just a few weeks, be able to seize power” in Afghanistan. In subsequent weeks, other leader members of Chancellor Angela Merkel’s cabinet echoed Maas’s statement. It now appears that, as German diplomats and intelligence officers were forced to leave hastily the Central Asian country, they left behind numerous “people employed in Germany’s interests”, analysis to the German national broadcaster, Deutsche Welle (DW).

In his according of the BND’s performance in the Afghan situation, DW journalist Marcel Fürstenau quotes former BND intelligence officer Gerhard Conrad, who claims that the spy agency lacked sources on the ground. Others, including University of London researcher Jan Koehler, tell Fürstenau that the German intelligence services failed to grasp the broader dynamics of Afghan society, which are permeated by “a lack of trust among the Afghan security forces in their own government”, and led them to surrender to the Taliban en masse.

The possibility of an official parliamentary investigation into the performance of the BND is now a strong prospect in the coming weeks, says Fürstenau. He adds that that several senior members of Chancellor Merkel’s government would have to testify behind closed doors during a probe. The soon-to-retire ‘iron lady’ of German politics may even have to testify after she leaves office, he concludes.

► Author: Joseph Fitsanakis | Date: 20 August 2021 | Permalink

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Germany arrests wife of alleged spy for China, says she assisted his espionage work

August 5, 2021 by 1 Comment

BND Germany

FEDERAL PROSECUTORS IN THE German city of Munich have arrested the wife of a German political scientist, who was himself arrested last month on charges of spying for China. Identified as “Klara K.”, the woman is believed to be a dual citizen of Germany and Italy. She is the wife of “Klaus K.”, 75, who began his career in the 1980s as a member of staff of the political research foundation Hanns Seidel Stiftung. The Munich-based foundation is the informal think-tank of the conservative Christian Social Union (CSU), which is the Bavarian arm of German Chancellor Angela Merkel’s Christian Democratic Union.

As part of his job, Klaus L. traveled frequently to countries in Africa, Asia and Europe, as well as to former Soviet states. It is also believed that, for over five decades, he worked as a paid informant for the German Federal Intelligence Service (BND) —Germany’s foreign intelligence agency. On July 5, Klaus L. was arrested by the German police, and charged with spying for China. His arrest came a few weeks after his home in Munich was searched by the police, as part of an investigation into his activities.

On Monday, federal prosecutors in Munich said they had also arrested Klaus K.’s wife, Klara K. She has been charged with “regularly provid[ing] Chinese secret service officials with information in the run-up to, or after, state visits or multinational conferences” in which she and Klaus K. participated. She has also been charged with providing Chinese intelligence with “information on pertinent current issues”.

Last month, German media reported that Klaus and Klara K. were arrested shortly after returning to the Bavarian capital from Italy. The couple were on their way to the Munich International Airport, from where they were scheduled to travel to the Chinese autonomous region of Macau, allegedly in order to meet their Chinese handlers. Neither the Chinese central government, nor the Chinese embassy in Berlin, have commented on the case. The BND said on Monday that it did not “comment on matters that relate to […] intelligence information or activities”.

► Author: Joseph Fitsanakis | Date: 05 August 2021 | Permalink

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German think-tank researcher arrested on suspicion of spying for Chinese intelligence

July 7, 2021 by Leave a comment

Shanghai

A GERMAN POLITICAL SCIENTIST, who worked for years as a senior member of a prominent Munich-based think-tank, has been arrested by German authorities on suspicion of spying for Chinese intelligence. In line with German privacy laws, the man has been named only as “Klaus L.”. He is believed to be 75 years old and to live in Munich.

According to reports, the suspect worked since the 1980s for the Hanns Seidel Stiftung, a political research foundation named after a former chairman of the conservative Christian Social Union (CSU) of Bavaria. The Munich-headquartered foundation is the informal think-tank of the CSU, which is the Bavarian arm of German Chancellor Angela Merkel’s Christian Democratic Union.

As part of his job, Klaus L. traveled frequently to countries in Africa, Asia and Europe, as well as former Soviet states. It is also believed that, for over 50 years, he had worked as a paid informant for the German Federal Intelligence Service (BND) —Germany’s foreign intelligence agency, which is equivalent to the United States Central Intelligence Agency. According to a government press statement, Klaus L. would provide the BND with information relating to his foreign travels, conference attendance and other “certain issues” of interest to the spy agency. In return, the BND allegedly funded some of his travel and conference expenses, and provided him with a regular stipend.

But in the summer of 2010, Klaus L. was allegedly approached by Chinese intelligence during a trip to the city of Shanghai. According to German counterintelligence, he was persuaded by the Chinese to cooperate with Chinese intelligence operatives, and did so until the end of 2019. In November of that year, German police searched his home in Munich, as part of an investigation into his activities. In May of this year, Klaus L. was charged with espionage and on July 5 he was formally arrested.

Interestingly, Klaus L. does not deny that he provided sensitive information to China. He argues, however, that he informed his BND handler about his contacts with the Chinese, and that these were known to German intelligence. He therefore claims that his Chinese contacts were part of a German counterintelligence operation targeting the Chinese government. His trial is scheduled for this fall.

► Author: Joseph Fitsanakis | Date: 07 July 2021 | Permalink

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Russian spy activity has reached Cold War levels, say Germany’s intelligence chiefs

June 7, 2021 by 1 Comment

Thomas Haldenwang Bruno Kahl

RUSSIAN INTELLIGENCE ACTIVITY in Germany has reached levels not seen since the days of the Cold War, while espionage methods by foreign adversaries are now more brutal and ruthless, according to the country’s spy chiefs. These claims were made by Thomas Haldenwang, who leads Germany’s Agency for the Protection of the Constitution (BfV), and Bruno Kahl, head of the Federal Intelligence Service (BND), which operates externally.

The two men spoke to the Sunday edition of Die Welt, one of Germany’s leading newspapers. Their joint interview was published on June 6. Haldenwang told Die Welt am Sonntag that the presence of Russian spies on German soil reflects Moscow’s “very complex intelligence interest in Germany”. Accordingly, Russia has “increased its [espionage] activities in Germany dramatically” in recent years, said Haldenwang.

The counterintelligence chief added that Russia has a “large number of agents” that are currently active in German soil. Their goal is to try to “establish contacts in the realm of political decision-making”. One of many topics that the Kremlin is intensely interested at the moment is the future of Russia’s energy relationship with Germany, according to Haldenwang.

At the same time, Russia’s espionage methods are becoming “coarser” and the means that it uses to steal secrets “more brutal”, said the spy chief. Kahl, his external-intelligence colleague, agreed and added that Germany’s adversaries are “employing all possible methods […] to stir up dissonance between Western states”. Their ultimate goal is to “secure their own interests”, concluded Kahl.

However, despite Russia’s increased intelligence activity in Germany, the most serious threat to the security and stability of the German state is not Moscow, but domestic rightwing extremism, said Haldenwang. Notably, the German spy chief discussed the unparalleled rise of rightwing rhetoric on social media and websites. Such propaganda is being spread by people that he termed “intellectual arsonists”. Their “hate-filled messages” are essentially anti-democratic, said Haldenwang.

► Author: Joseph Fitsanakis | Date: 07 June 2021 | Permalink

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Vienna’s wartime Gestapo chief worked for West German intelligence, records show

April 7, 2021 by 1 Comment

Franz Huber

THE HEAD OF THE secret police in Nazi-occupied Vienna, who oversaw the mass deportation of Austrian Jews to concentration camps, worked for West Germany’s postwar spy agency, according to newly released records. Starting his career as a police officer in Munich during the Weimar Republic, Franz Josef Huber joined the Nazi Party in 1937. Due to his prior law enforcement work, he was immediately appointed to the office of Heinrich Müller, who headed the Gestapo —Nazi Germany’s secret police.

Following the German annexation of Austria in 1938, the Nazi Party sent Huber to Vienna, where he oversaw all criminal and political investigations by the Gestapo. He remained head of the Nazi secret police in the Austrian capital until December of 1944. Under his leadership, the Vienna branch of the Gestapo became one of the agency’s largest field offices, second only to its headquarters in Berlin, with nearly 1000 staff members. Huber himself was in regular communication with Adolf Eichmann, who was the logistical architect of the Holocaust. Nearly 66,000 Austrian Jews, most of them residents of Vienna, perished in German-run concentration camps under Huber’s watch.

In May of 1945, following the capitulation of Germany, Huber surrendered to American forces and was kept in detention for nearly four years. During his trial in the German city of Nuremburg, Huber admitted to having visited German-run concentration camps throughout his tenure in the Gestapo. But he claimed that he had not noticed signs of mistreatment of prisoners. He was eventually cleared of all charges against him and released in 1949, allegedly because allied forces wanted to concentrate on more senior members of the Nazi Party, including Huber’s boss, Heinrich Müller.

Last week, German public-service broadcaster ARD said it found Huber’s name in records belonging to the Federal Intelligence Service —Germany’s external intelligence agency. It turns out that, following his release from detention in 1948, Huber joined the Gehlen Organization —named after the first director of the BND, Reinhard Gehlen. Gehlen was a former general and military intelligence officer in the Nazi Wehrmacht, who had considerable experience in anti-Soviet and anti-communist operations. In 1956, as the Cold War was intensifying, the United States Central Intelligence Agency, which acted as the BND’s patron, appointed Gehlen as head of the BND, a post which he held until 1968. During his tenure, Gehlen staffed the BND with numerous Nazi war criminals, who had considerable expertise on the Soviet Union and anti-communism.

According to the ARD, Huber worked for the BND under Gehlen until 1967, when he retired along with other former Nazi BND officers. His retirement occurred at a time when the BND, under popular pressure, tried to cut ties with some of the most notorious former Nazis in its ranks. However, Huber was given a state pension, which he kept until his death in 1975. Following his retirement from the BND, he allegedly worked for an office equipment supplier in his hometown of Munich, without ever facing any prosecution for his wartime role in the Gestapo. In an article published on Monday, The New York Times claimed that the United States government was fully aware of Huber’s Nazi past.

► Author: Joseph Fitsanakis | Date: 07 April 2021 | Permalink

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German court stops spy agencies from conducting mass surveillance of foreigners

May 20, 2020 by 3 Comments

BND GermanyGermany’s Federal Court of Justice has ruled that the country’s intelligence agencies are not entitled to spy en masse on the telecommunications exchanges of foreign citizens. The ruling comes in response to a lawsuit filed by several journalist groups, including the German chapter of Reporters Without Borders. The groups partnered with the German-based Society for Civil Rights and argued in their lawsuit that existing law did not prevent German spy agencies from spying at will on the communications of journalists. This could potentially allow the intelligence agencies to identify trusted sources that journalists use in their work, and even share that information with intelligence agencies of other countries, they argued.

Germany’s foreign intelligence agency, the Federal Intelligence Service, or BND, is uniquely positioned with access to a vast volume of telecommunications data and content. This is because Germany hosts some of the busiest and highest-capacity Internet exchange points in the world. The country’s extensive telecommunications infrastructure includes the so-called DE-CIX exchange in Frankfurt, believed to be the world’s second-busiest Internet node. It is believed that the DE-CIX Internet exchange alone carries over a trillion messages per day to and from Western Europe, Russia, the Middle East and North Africa.

The BND is not allowed to spy on the communications of German nationals. However, according to German media reports, the agency had until now assumed that Internet messages sent by foreigners, which passed through German-based exchanges, were fair game for interception and analysis. This was because, according to the BND, foreign nationals were not protected under Germany’s Basic Law —a term that refers to the German Constitution— which means they and their communications had no privacy protections under German law.

But this assumption was dispelled on Tuesday by the Federal Court of Justice, which is Germany’s highest court. The court ruled that telecommunications surveillance against foreigners is subject to Article 10 of Germany’s Basic Law, which affords German citizens the right to privacy. In other words, the law also protects the telecommunications of foreigners, according to the court, which means that surveillance of foreign communications should be carried out only in a targeted fashion, in response to specific cases or to target specific individuals. The court challenged the mass-surveillance —as opposed to a targeted surveillance— model of the BND’s data collection, and said that it the spy agency’s activities required more stringent oversight, especially in relation to the communications of reporters and lawyers. Finally, the court agreed with the plaintiffs that the constitutional safeguards against the BND’s ability to share its intercepted data with foreign spy agencies were insufficient.

In its ruling, the court gave the German government until December of 2021 to propose a new law governing telecommunications surveillance against foreigners, which will be compliant with the German Constitution.

► Author: Joseph Fitsanakis | Date: 20 May 2020 | Permalink

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Swiss government files criminal complaint over Crypto AG scandal involving CIA

March 3, 2020 by Leave a comment

Crypto AGSwitzerland’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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Swiss neutrality ‘shattered’ as leading cryptologic firm revealed to be CIA front

February 17, 2020 by 2 Comments

Crypto AGSwitzerland 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.

The revelation, published last Tuesday by The Washington Post and the German public broadcaster ZDF, confirmed rumors that had been circulating since the early 1980s, that Crypto AG had made a secret deal with the US government. It was believed that the Swiss-based company had allowed the US National Security Agency to read the classified messages of dozens of nations that purchased Crypto AG’s encoding equipment. These rumors were further-substantiated in 2015, when a BBC investigation unearthed evidence of a “gentleman’s agreement”, dating to 1955, between a leading NSA official and Boris Hagelin, the Norwegian-born founder and owner of Crypto AG.

But the reality of this alleged secret pact appears to have been even more controversial. According to last week’s revelations, the CIA and West Germany’s Federal Intelligence Service (BND) secretly purchased the Swiss company and paid off most of its senior executives in order to buy their silence. The secret deal allegedly allowed the US and West Germany to spy on the classified government communications of several of their adversaries —and even allies, including Italy, Spain and Greece, as well as Austria, Jordan, Saudi Arabia and the United Arab Emirates.

What is more, the secret CIA/BND partnership with Crypto AG was known to senior British and Israeli officials, and information derived from it was routinely shared with them. Government officials in Switzerland and even Sweden were aware that Crypto AG had been compromised, but remained silent.

American and German authorities have not commented on the revelations. But the story has monopolized Swiss media headlines for several days. Some news outlets have opined that the traditional Swiss concept of political neutrality has been “shattered”. Meanwhile, a Swiss federal judge has opened an investigation into the revelations, as the Swiss parliament is preparing to launch an official inquiry. Switzerland’s Prime Minister, Simonetta Sommaruga, said on Sunday that the government would discuss the issue “when we have the facts”.

► Author: Joseph Fitsanakis | Date: 17 February 2020 | Permalink

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Israel leaked video that brought down Austrian government, says German ex-spy chief

May 28, 2019 by 1 Comment

Strache GudenusIsraeli intelligence was likely behind the leaked video that brought down the far-right governing coalition in Austria on Monday, according to the former deputy director of Germany’s spy agency. The surreptitiously recorded video was leaked to two German media outlets on May 17, days before Austrian voters participated in the continent-wide elections for the European Union. In the video, two senior members of Austria’s governing far-right Freedom Party are seen conversing with an unnamed woman posing as a Russian investor. The two men in the video were Heinz-Christian Strache, the the Freedom Party’s leader and until recently Austria’s Vice Chancellor, and Johannes Gudenus, the party’s deputy leader and a member of parliament. In the video, Gudenus and Strache promise to award the woman’s firm state contracts if her uncle —a Russian oligarch— purchases an Austrian newspaper and uses it to support the Freedom Party. The video threw Austria’s political system into disarray and prompted the resignations of both Strache and Gudenus. On Monday, Austria’s Chancellor, Sebastian Kurz, was removed from power during a special parliamentary session in Vienna.

But the question is who leaked the video, and why? In an article in the Cicero, a monthly political magazine based in Berlin, a former senior official in Germany’s Federal Intelligence Service (BND) argues that Israeli intelligence was probably behind the leak. The article’s author is Rudolf Adam, who served as deputy director of the BND from 2001 to 2004, before serving as president of the Federal Academy for Security Policy of the German Ministry of Defense. Adam argues that the actions of Strache and Gudenus, as shown in the leaked video, seem “half mafia-like and half-treasonable”, and that the two should face legal consequences. But he goes on to ask “a far more interesting question”, namely “who is behind this intrigue [and] what were the intentions of its initiators?”. Adam points out that nothing is known about the woman in the video; she reportedly met Gudenus several months before the video was filmed. She posed as the Latvian niece of a Russian oligarch with ties to Russia’s President Vladimir Putin. In exchanges that lasted for several months, the woman told Gudenus that she planned to move with her daughter to Vienna and was interested in investment opportunities. She eventually invited him and Strache to a meeting in a villa in the Spanish resort island of Ibiza. It was there where the video was recorded. Read more of this post

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German chancellor inaugurates world’s largest spy agency headquarters in Berlin

February 13, 2019 by 8 Comments

BND GermanyThe chancellor of Germany has officially inaugurated the largest headquarters of any spy agency in the world. Last Friday, Angela Merkel led the public ceremony that marked the opening of the Zentrale des Bundesnachrichtendienstes, which is the new headquarters of the German Federal Intelligence Service. Known by the initials BND, the agency operates as Germany’s primary foreign intelligence service. It employs close to 7,000 people in more than 300 locations around the world, and its annual budget is approximately €1 billion ($1.13 billion).

Until recently, the BND was headquartered in the outskirts Munich, in the southern German state of Bavaria. But as of last week, the spy agency has officially moved to its new headquarters in downtown Berlin. The massive new complex is located in the German capital’s affluent Mitte district, just a stone’s throw from a section of what used to be the Berlin War —a major symbol of the Cold War. The new complex spans 3 million sq. ft., making it the largest headquarters of any intelligence agency in the world. The United States Central Intelligence Agency’s headquarters at Langley, Virginia, comes a close second. Construction on the site in Mitte began in 2006 and was initially scheduled for completion in 2011, but was finally finished in 2017, 12 years after it began. It cost approximately €1 billion ($1.13 billion). British newspaper The Guardian reports that the new complex consists of 20,000 tons of steel and has 14,000 windows and 12,000 doors. The land on which the new BND headquarters is built used to be the site of police barracks, until it was heavily damaged by bombing carried out by the Allied forces in 1945. Following the partition of Germany, East German authorities built a sports complex and stadium on the site, which was demolished in 1999, in preparation for Germany’s unsuccessful bid to host the 2000 Summer Olympic Games.

According to reports in the German media, just over 3,000 BND employees have already relocated from Munich to the new BND headquarters, while another 800 are expected to relocate there in the coming year. During her speech on Friday, Chancellor Merkel said that the world was becoming “increasingly confusing”, which made the need for a “strong and efficient [German] foreign intelligence service […] more urgent than ever”. Interestingly, the new complex features a sizeable visitor’s center that is open to the public, making the BND the world’s first foreign intelligence agency with a public-access visitors’ facility.

► Author: Ian Allen | Date: 13 February 2019 | Permalink

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