US Pentagon insists it can continue to function despite COVID-19 outbreak

PentagonThe United States Department of Defense has insisted that it can continue to function uninterrupted, despite claims by some media outlets that American military readiness may soon begin to degrade as a result of the coronavirus (COVID-19) outbreak.

During a press conference on Thursday, US Secretary of Defense Mark Esper said he was “fully confident” that the Pentagon could perform its functions uninterrupted by the spread of the coronavirus. He added that he was expecting to receive a proposal early next week about how the Pentagon —the world’s largest office building, staffed by 20,000 employees— could prevent or mitigate the spread of the virus. Meanwhile, he said, the Pentagon’s National Military Command Center —designed for a nuclear attack— would be able to sustain the Department of Defense’s employees “for weeks at a time, if they have to be locked down inside the building if we have some type of outbreak”.

He did not comment on reports from last week, according to which senior American military commanders expressed concerns about the state of the country’s military readiness by the end of March. Late on Thursday, the US European Command announced the early termination of a joint military exercise that was underway in Israel, as a precautionary measure against COVID-19. A few days earlier, Pentagon officials canceled a joint military exercise in South Korea. Meanwhile, leading US defense contractor Lockheed Martin announced on Thursday that it had halted production at its F-35 plants in Italy and Japan. The company said that production at its factories in Texas continued uninterrupted.

Defense Secretary Esper said yesterday that the US military’s worldwide efforts on COVID-19 were being coordinated by US Norther Command, which was preparing for “short- and long-term scenarios, domestic and international situations”. He did not elaborate on that statement. Also on Thursday, the Pentagon announced that it had started administering coronavirus screenings to all new and potential recruits for all branches of the Armed Forces.

Author: Joseph Fitsanakis | Date: 05 March 2020 | Permalink

Chinese cybersecurity firm accuses CIA of 11-year cyberespionage campaign

CIA headquartersA leading Chinese cybersecurity firm has accused the United States Central Intelligence Agency of using sophisticated malicious software to hack into computers belonging to the Chinese government and private sector for over a decade.

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

US unable to trace $716 million worth of weapons given to Syrian rebels

Syrian Civil War rebelsThe United States government is unable to account for nearly $716 million in weapons it gave to various Syrian groups during the war against the Islamic State, according to a Department of Defense audit. The weapons were procured under the Counter Islamic State of Iraq and Syria Train and Equip Funds (CTEF) program, which was administered by the US Pentagon in 2017 and 2018. The CTEF program cost the US taxpayer a total of $930 million.

But now an audit by the Pentagon’s Office of the Inspector General, which was released to the public on Tuesday, shows that most of the CTEF weaponry’s whereabouts cannot be verified. The reason, according to the audit, is that officials with the Special Operations Joint Task Force – Operation Inherent Resolve, failed to maintain detailed lists of all military equipment given to Washington’s allies in Syria between 2017 and 2018. Officials did not have a centralized depository facility for dispensing the equipment, and no documentation was kept during the operation, according to the audit. Consequently, thousands of weapons, weapons parts and other military hardware were exposed to “loss and theft”, says the Pentagon report.

There is no speculation in the report about where the missing weapons may have ended up, nor is there any indication that they may have fallen into the hands of the Syrian government, the Islamic State or Iranian-backed Shiite paramilitaries that are active in the region. However, the report notes that the Syrian battlefield is awash with American-manufactured weaponry. Much of the weaponry fell into the hands of pro-Syrian government militias, or the Islamic State, after US-trained rebel groups were defeated by them, joined them or simply surrendered.

Author: Joseph Fitsanakis | Date: 21 February 2020 | Permalink

US arrests Mexican man for spying for Russia in mystery case involving informant

FBI MiamiThe United States Federal Bureau of Investigation has arrested a Mexican man, who is accused of spying in the city of Miami on behalf of the Russian government. Local media reports suggest that the target of the man’s spying was a Russian defector who gave American authorities information about Russian espionage activities on US soil.

In a news release issued on Tuesday, the US Department of Justice identified the man as Hector Alejandro Cabrera Fuentes, a Mexican citizen residing in Singapore. The statement said that Fuentes was arrested on Monday and was charged with “conspiracy” and “acting within the United States on behalf of a foreign government”.

According to the statement, Fuentes was recruited in April of 2019 by an unnamed Russian government official. His first assignment was to rent an apartment in Miami-Dade County using fake identification. One he carried out the assignment, Fuentes allegedly traveled to Russia, where he briefed his handler. He was then asked to return to Miami and drive to an apartment complex, where he was to observe a vehicle belonging to an individual that the Department of Justice statement describes as a “US government source”. Fuentes was tasked with providing his Russian handler with the vehicle’s license plate number.

Having been given a detailed physical description of the vehicle by his Russian handler, Fuentes drove to the apartment complex in Miami, but was stopped at the entrance to the complex by a security guard. While Fuentes was speaking with the security guard, Fuentes’ wife allegedly exited the car and took a photograph of the vehicle in question. According to the FBI, she later shared the photograph with Fuentes’ Russian handler on the mobile phone application WhatsApp. The photograph was discovered by US Customs and Border Protection agents on the smartphone of Fuentes’ wife on Sunday, as the pair tried to board a flight to Mexico City.

The US Department of Justice news release does not identify Fuentes’ alleged espionage target. But an article in The Miami Herald claims that the target is an FBI informant who has provided the Bureau’s counterintelligence division with critical information about Russian espionage operations in the Miami area. Fuentes is scheduled to appear in court for a pretrial detention hearing this coming Friday. His arraignment has been scheduled for March 3. The press release does not explain why Fuentes’ wife was not arrested.

Author: Joseph Fitsanakis | Date: 20 February 2020 | Permalink

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

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

US threatens to de-fund Africa disease control program over Chinese influence

African UnionThe United States has threatened to pull its funding for an Africa-wide disease control program if the African Union decides to accept an offer from China to build the program’s new headquarters. The dispute accentuates a growing competition between Washington and Beijing to exert political control in Africa and places the African Union at the center of a difficult dilemma.

The quarrel concerns the Africa Centers for Disease Control and Prevention, or Africa CDC, a network of five biomedical research hubs that are located in Zambia, Kenya, Gabon, Nigeria and Egypt. The network was established in 2017 in response to the outbreak of the Ebola epidemic in western Africa. Its mission is to gather data that can help monitor and contain disease outbreaks and other health crises throughout the continent. The network’s central hub is located at the headquarters of the African Union in Addis Ababa, Ethiopia.

Africa CDC is an initiative of the African Union, but it is partly funded by outside countries and bodies, including China, the United States, and the World Bank. Washington supported the establishment of Africa CDC with a donation of $14 million, and an offer to pay the project director’s salary, as well as assign scientists to work there from the US CDC. But the United States has expressed concerns about a recent offer by China to double its funding of Africa CDC and to build a the organization’s new headquarters, at the cost of $80 million. Foreign affairs ministers from the African Union’s 55 states began discussing Beijing’s offer on Thursday during a meeting in Ethiopia.

There are some among them who question China’s intentions. They refer to news reports that surfaced in the French press in 2018, according to which the Chinese-built headquarters of the African Union was comprehensively ‘bugged’ by Beijing. According to the reports, the $200 million, 19-storey skyscraper in the Ethiopian capital was hardwired with computer servers that secretly communicate with Chinese government computers, without the consent of African Union network managers.

On Thursday The Wall Street Journal quoted an anonymous United States government official, who said that “if the Chinese build the headquarters [of Africa CDC], the US will have nothing to do with” the organization. The African Union has not commented on The Journal’s article.

Author: Joseph Fitsanakis | Date: 07 February 2020 | Permalink

 

United States quietly scraps joint anti-terrorist intelligence project with Turkey

Incirlik TurkeyThe United States has indefinitely suspended a longstanding military intelligence-sharing program with its North Atlantic Treaty Organization ally Turkey. The program, which targets a Kurdish separatist group, is believed to have been in place since 2007. According to the Reuters news agency, which published the story on Wednesday, it has never before been reported on by news media.

The joint intelligence-sharing program targets the Kurdistan Workers Party (PKK), a militant organization that campaigns for a separate homeland for Turkey’s Kurdish minority. Washington and Ankara have both designated the group a terrorist organization, and have been working jointly to combat it since at least 1997. According to Reuters, the United States military has been carrying out surveillance on the PKK using unmanned surveillance drones that fly out of Turkey’s Incirlik air base. Much of the surveillance focuses on the regions of Turkey that border with Iraq and Syria, where the PKK has a strong grassroots presence.

But Washington decided to suspend the program indefinitely last October, said Reuters. The decision was allegedly taken after Turkish troops invaded Syria in order to push back Kurdish rebels and establish a Kurdish-free buffer zone along the Turkish-Syrian border. The news agency cited four American officials, who did not wish to identify themselves, “due to the sensitivity of the matter”. It also cited an unnamed Turkish official, who confirmed that the intelligence-collection program had been terminated.

The American officials told Reuters that the suspension of the program would place strains on the ability of the Turkish military to respond to the challenges of its ongoing guerrilla war against Kurdish militants in northern Syria, as well as within Turkey. It will also make “the anti-PKK campaign more […] costly for Turkey”, one of the officials told the news agency.

Reuters said it contacted the United States Department of Defense, but was told by a spokeswoman that the Pentagon would “not provide details on operational matters”. A spokesperson from the United States Department of State told Reuters that its representatives could “not comment on intelligence matters”. The Turkish Ministry of Defense did not return requests for comment.

Author: Joseph Fitsanakis | Date: 06 February 2020 | Permalink

Leader of American far-right paramilitary group is based in Russia

The BaseThe mysterious leader of an American far-right paramilitary group, which authorities say is seeking to overthrow the United States government, runs the organization from Russia, according to a probe conducted by the BBC. The group, which calls itself The Base, is thought to have been formed in the summer of 2018. Since then, it is believed to have recruited dozens of members using encrypted messaging applications.

The Base urges its members to undergo paramilitary training and learn how to evade surveillance by government agencies. It also instructs them to create and use ciphers for communication and trains them to use encrypted applications to exchange messages so that government agencies cannot access their content. The Federal Bureau of Investigation describes The Base as a “racially motivated violent extremist group” that “seeks to accelerate the downfall of the United States government, incite a race war, and establish a white ethno-state”. Earlier this month, authorities arrested three alleged members of the organization, which are accused of engaging in a conspiracy to commit murder.

Despite the attention that The Base has received from American authorities, almost no information is available about the group’s leader and founder. This individual goes by the aliases “Norman Spear” and “Roman Wolf”. But a recent investigation alleged that his name is Rinaldo Nazzaro and that he is a 46-year-old American man from New York. Prior to founding The Base, Nazzaro is believed to have purchased land in a remote area of America’s Pacific Northwest region with the goal of creating a white-only enclave.

Now the BBC has said that Nazzaro is living in Russia, from where he is allegedly running The Base. He is thought to have married a Russian woman in 2012 in the New York borough of Manhattan. The couple probably relocated to the Russian city of St. Petersburg “less than two years ago”, according to the BBC. In an article published on Friday, the BBC said that its researchers had been able to identify Nazzaro from his online activity and from photographs and videos he had posted online in the past year.

Author: Ian Allen | Date: 27 January 2020 | Permalink

MI5 director plays down US threat to end intelligence sharing over Huawei

Sir Andrew ParkerThe director of Britain’s domestic intelligence agency has dismissed warnings by the United States that intelligence sharing between the two allies will be impeded if London decides to use Chinese-made telecommunications hardware. The British government has come under relentless pressure by Washington to bar Huawei Technologies, one of the world’s leading telecommunications hardware manufacturers, from competing for contracts to build the United Kingdom’s 5th generation cellular communications infrastructure.

In recent years, Huawei has come under scrutiny by some Western intelligence agencies, who view it as being too close to the Communist Party of China. More recently, Washington has intensified a worldwide campaign to limit Huawei’s ability to build the infrastructure for 5G, the world’s next-generation wireless network. Along with some if its allies, notably Australia and Canada, the US is concerned that the Chinese telecommunications giant may facilitate global wiretapping on behalf of Beijing’s spy agencies. Last year, Washington warned two of its main European allies, Britain and Germany, that it would stop sharing intelligence with them if they allowed Huawei to compete for 5G contracts.

But in an interview with The Financial Times, Sir Andrew Parker, head of the Security Service (MI5), said on Sunday that he didn’t believe Britain’s intelligence-sharing relationship with America would be impacted by the decision. When asked whether Washington would stop sharing intelligence with London if the British government allowed a bid by Huawei, Sir Andrew said he had “no reason today to think that”. He added that Britain’s intelligence relations with the US, and with other close allies, such as Canada and Australia, were “the strongest they’ve ever been”. Britain’s intelligence partnership with America “is, of course, of great importance to us”, said Sir Andrew, and went on: “I dare say, to the US too, though that’s for them to say. It is a two-way street”.

Meanwhile was reported over the weekend that a high-level delegation from the National Security Agency —America’s largest intelligence agency— and the US National Economic Council would be in London today, in what appears to be a final effort to persuade London not to cooperate with Huawei. Prior to her resignation last year, British Prime Minister Theresa May had reportedly decided to allow the Chinese firm to compete for 5G contracts. Her successor, Prime Minister Boris Johnson, is reputed to be in agreement with that decision. Last April, German intelligence official also dismissed American warnings that intelligence sharing with Berlin would end if Huawei built any part of the German 5G network.

Author: Joseph Fitsanakis | Date: 13 January 2020 | Permalink

Assessing the implications of Iran’s missile attack on Iraqi military bases

Iran IraqThe missiles that targeted American troops in Iraq a few hours ago offer significant clues about the evolving confrontation between Iran and the United States. The attack appears to have been largely symbolic —a somewhat rushed attempt to restore some of Iran’s wounded prestige following the assassination of its military commander, Qasem Suleimani. At the same time, however, it is also the prelude to a broader regional conflict that appears increasingly unavoidable.

There are two notable aspects in the attack. First, the fact that Tehran did not —as many expected— take aim at American targets using its proxies in Iraq, Lebanon, or Yemen. Instead, not only did the attack come directly from Iran, but the Islamic Revolutionary Guard Corps (IRGC), of which Soleimani was a leading commander, openly claimed responsibility for it. This is a major paradigm shift for the Iranians, who in the past have taken great care to avoid giving any indication of their direct involvement in military or paramilitary attacks on their opponents. It is clear that Q QuoteSoleimani’s killing is viewed by Tehran as too insulting to be responded to indirectly. This does not mean that Tehran will not revert to its standard method of employing proxies in the future. But the fact that it consciously chose to deviate from that time-tested method is in itself extremely important.

The second notable aspect of the attack is that it was markedly muted, especially considering the many options that are available to the Iranians. According to reports, 22 ballistic missiles were fired, most of which struck two military bases housing US troops in western and northern Iraq. The number of missiles fired is surprisingly low, given that Iran possesses the largest ballistic-missile force in the entire Middle East. Additionally, it is interesting that Tehran directed its attacks against the most obvious and predictable American target in the region —uniformed US personnel stationed in what is essentially Iranian-controlled territory. These troops have been on high alert since the moment Soleimani was assassinated. It is therefore highly unsurprising that no American casualties have been reported (although Iranian state media are apparently telling their domestic audiences that “80 terrorists” died in the attack).

The fact remains that, if Iran’s leaders truly wanted to cross the point of no return, they could have attacked American diplomatic facilities in over a dozen countries in the region, including Iraq, Israel, Jordan, and many others. Alternatively, they could have directed their ire against American political and commercial targets in Saudi Arabia, of which there are countless. They could have also sent an unmistakably ominous message to the global financial markets by attacking energy facilities in the region, or by blocking maritime traffic in the Strait of Hormuz. Or they could have carried out all of the above simultaneously, thus virtually ensuring a US response, which would in turn ignite an all-out war. But they didn’t —which should be interpreted that the IRGC is not, for now, interested in going to war. Read more of this post

Analysis: Middle East on verge of new regional war as US kills top Iran general

Qasem SoleimaniIn an act whose implications are impossible to overstate, the United States has assassinated General Qasem Soleimani, arguably Iran’s second most powerful official. In the early hours of this morning, the entire Middle East stood on the verge of a regional war as the US Department of Defense announced it killed Soleimani in a “defensive action […] aimed at deterring future Iranian attack plans”. But Soleimani’s killing will be seen by the Iranian government as nothing short of an official declaration of war. Tehran’s next move will determine the precise form this new war will take.

The United States, Israel and Saudi Arabia have targeted Soleimani for assassination for over a decade. In 2019 alone, Iran reported over half a dozen alleged plots to kill the general, the most recent of which was in early October. Soleimani’s killing is therefore not surprising. Moreover, Washington’s move rests on a number of crucial calculations by the White House, which help explain why US President Donald Trump made the decision to kill Soleimani, and why he did so now.

In the not-too-distant past, some of America’s tactical security goals aligned with Soleimani and his Quds Force —an elite unit inside the Islamic Revolutionary Guard Corps, which is tasked with exporting the Iranian Revolution abroad. The Iranian paramilitary unit helped Washington deal with the Afghan Taliban in the days after the 9/11 attacks, and its proxies in Iraq and Syria helped the US and its allies deliver fatal blows to the Islamic State. But in doing so, Tehran solidified its power within Iraq, turning its government into a satellite of Iran. The rise of the Popular Mobilization Forces (PMF), the Iranian-supported militias in Iraq, is largely a replay of the rise of Hezbollah, Iran’s paramilitary proxy in Lebanon, in the 1980s. Having painted themselves into a corner, America’s political leadership had to act. It chose to do so by essentially ‘decapitating’ the Quds Force, which is the main conduit between Iran and the PMF. It is worth noting that Abu Mahdi al-Muhandis, the deputy head of the PMF, was also killed in the same strike. Washington’s hope is that these killings can somehow prevent —or at least curtail— the Lebanization of Iraq. Read more of this post

US expels Chinese diplomats for the first time since 1987

Chinese embassy in the United StatesThe United States quietly expelled two Chinese diplomats in October of this year, a move that neither Washington nor Beijing chose to make public, according to a report published on Sunday. If true, the incident would signify the first known expulsions of Chinese diplomatic personnel from the US since 1987.

The incident was reported by The New York Times, which cited “six people with knowledge of the expulsions”. It said that the expulsions were triggered by an incident that took place in September in the US state of Virginia. It involved at least two Chinese diplomats stationed in Washington, who allegedly attempted to enter “a sensitive installation” near the city of Norfolk. The paper did not name the installation, but said that it belongs to the US Armed Forces and is also used by members of Special Operations forces.

According to the American side, a car carrying the Chinese diplomats and their spouses drove up to one of the checkpoints of the military installation. Upon realizing that the car’s passengers did not have permission to enter the base, the guard at the checkpoint asked the driver to proceed through the gated entry and immediately turn around, thus exiting the base. But the car allegedly drove straight into the base and did not slow down after military personnel pursued it. It came to a stop only after several fire trucks blocked its way.

Once apprehended, the car’s passengers claimed that their knowledge of English was limited and had thus misunderstood the instructions given to them by the guard at the entrance to the base. The New York Times reported that this explanation was echoed by associates of the Chinese diplomats, who said that they were on “a sightseeing tour when they accidentally drove onto the base”.

But US officials told The Times they are skeptical of that explanation, and suspect the Chinese diplomats were trying to assess the physical security of the installation. Moreover, at least one of the Chinese diplomats was allegedly an intelligence officer operating under diplomatic cover —a clue that heightened the skepticism of American officials.

Interestingly, although it complained about the expulsions of its diplomats following the incident in Virginia, Beijing did not retaliate, as is customary in such cases. Therefore, no American diplomats or intelligence officers have been expelled from China in response to Washington’s move. The last time the US expelled Chinese diplomats from its soil was in 1987, when two employees of the Chinese embassy in Washington —almost certainly intelligence officers operating under diplomatic cover— were declared personae non gratae.

Author: Joseph Fitsanakis | Date: 16 December 2019 | Permalink

FBI examining FaceApp over potential counterintelligence concerns

FBIThe United States Federal Bureau of Investigation says it is examining possible counterintelligence threats in connection with the popular online application FaceApp, which is headquartered in Russia. The application first made its appearance in January of 2017 and quickly became popular among smartphone users around the world. It allows users to upload a photograph of their face and then edit it with the help of artificial-intelligence software. The software can change the user’s photograph to make it look younger or older, or make it look as if it is from the opposite gender. The result can be impressively realistic and life-like.

The St. Petersburgh-based company behind FaceApp, Wireless Lab, claims that the photos of users are uploaded to cloud servers situated in New Zealand, Australia and Singapore. They are then deleted within two days from the moment they are uploaded by users, without ever being transferred to servers located in the territory of Russia. But the FBI does not seem to believe these assurances. In a letter sent late last month to the Minority Leader of the US Senate, Charles Schumer (D-NY), the Bureau said it was examining FaceApp as part of its counterintelligence mission.

In the letter, which was published on Monday, Jill Tyson, Assistant Director of the FBI’s Office of Congressional Affairs, said the fact that Wireless Lab is based in Russia raised a number of counterintelligence concerns. These relate to the types of data Wireless Lab collects on its customers and the privacy policies that apply to Russian Internet companies. According to Tyson, the Russian Federal Security Service (FSB) has the right to “remotely access all communications and servers on Russian networks without making a request” to network providers. He added that, if the FBI found that FaceApp was involved in activities meant to interfere with upcoming elections in the United States, the Bureau would investigate the matter further, and possibly involve the Foreign Influence Task Force, an FBI-led body that was established after the 2016 US presidential elections.

The FBI’s letter was written in response to an earlier letter sent to the Bureau by Senator Schumer in July, which expressed concerns about potential threats posed by FaceApp to the privacy of American Internet users and to the nations’ security as a whole.

Author: Joseph Fitsanakis | Date: 03 December 2019 | Permalink

Extradition fight over Russian man held in Greece may point to spies’ use of bitcoin

Aleksandr VinnikAn intense fight between the United States and Russia over the extradition of a Russian cryptocurrency tycoon being held in Greece, is raising questions about the possible use of cryptocurrencies by spies. The tycoon in question is Aleksandr Vinnik, 39, who in 2011 co-founded BTC-e, an international cryptocurrency-trading platform. BTC-e allowed users to buy or sell several popular cryptocurrencies, including bitcoin and litecoin, using Russian rubles, United States dollars, or European Union euro currencies. Although headquartered in Russia, BTC-e’s servers were located in Bulgaria, while its operations were conducted through its offshore components in Cyprus and the Seychelles.

By 2015, BTC-e was reportedly facilitating just over 3 percent of the worldwide daily volume of cryptocurrency trading. But, according to some sources, the company was also facilitating up to 70 percent of worldwide criminal activity involving cryptocurrencies. Washington alleges that the company was built on a model that relied heavily on the activities of criminal entities, as the latter sought the ability to conduct online monetary transactions without being tracked by governments.

In 2017, American authorities seized BTC-e’s website —a move that terminated the company’s operations. Washington also prompted authorities in Greece to arrest Vinnik, while he was vacationing at a Greek resort with his family. The Russian co-founder of BTC-e is today in a Greek prison, awaiting a decision by the Greek authorities to extradite him to the United States. If this happens, he will be tried on 21 counts of international money laundering and a host of other criminal charges.

Interestingly, however, shortly after Vinnik’s arrest, the Russian government filed a court order to have Greece extradite him to Russia, where he is reportedly wanted for relatively minor fraud-related charges. What is more, the Greek government was directly lobbied by no other than the Russian President Vladimir Putin —an unusually high-level approach, when one considers Vinnik’s trivial charges in Russia. France has also sought to have Vinnik extradited there, instead of the United States.

What lies behind these moves? There are many who believe that American authorities moved against BTC-e after realizing that Russian spies used the company to hide their traces while trying to meddle with the 2016 presidential elections in the United States. A recent report by the State Department’s RFE/RL news website claims that a number of London-based observers from groups such as Global Witness and Elliptic Enterprises believe there are strong links between Russian spy agencies and BTC-e. American authorities have managed to access information about the inner workings of BTC-e’s website. They are probably viewing Vinnik as an intelligence asset, who can potentially shed light on the company’s alleged role as a money laundering mechanism for Russian spies —and probably others as well.

Author: Joseph Fitsanakis | Date: 29 November 2019 | Permalink

Venezuelan ex-spy chief disappears as Spain seeks to extradite him to US

Hugo CarvajalThe former director of Venezuela’s military spy agency, who is wanted in the United States for drug trafficking, reportedly disappeared in Spain as authorities there were attempting to extradite him to Washington. Hugo Carvajal is a retired general and former diplomat, who was a member of the late Venezuelan President Hugo Chávez’s inner circle. From 2004 to 2011, under Chávez’s tutelage, Carvajal headed the Directorate General of Military Counterintelligence (DGCIM).

In 2008 the US named Carvajal as a major facilitator of international drugs trafficking and imposed financial sanctions on his assets around the world. Washington accused Carvajal of assisting the paramilitary group known as the Revolutionary Armed Forces of Colombia (FARC) transport drugs from Latin America to Mexico and from there to the US.

Things took an interesting turn, however, when in February of this year Carvajal posted a video on social media in which he denounced Chávez’s successor, President Nicolás Maduro, and sided with his arch-nemesis, Juan Guaido, the President of the National Assembly of Venezuela. In his video, Carvajal urged the Venezuelan armed forces to stop siding with Maduro and support Guaido as Venezuela’s acting president. Guaido is openly supported by the United States and dozens of other Western countries.

Soon after making his announcement, Carvajal fled to Spain, where he was arrested in April, after the US Department of Justice filed a formal request for the former spy chief’s extradition to America. But in September, Spain’s top criminal court ruled that Carvajal would not be extradited to the US. The former spy chief was released minutes after the court made its decision known.

Last Friday, however, the same court accepted an appeal by the Office of the Public Prosecutor and overturned its earlier decision. Shortly after the court’s decision, Spanish media reported that Carvajal had already been arrested and was due to be transported to the US in a matter of days. But three days later, the former spy chief posted a message on his personal Twitter account saying that neither he nor his lawyers had been approached by Spanish police. It appeared, then, that Carvajal had not been detained.

Spanish newspaper El Pais reported on Tuesday that Carvajal was nowhere to be found when Spanish police officers went to his residence in Madrid to arrest him. His whereabouts are currently unknown, said the paper. The US Department of Justice has not commented on the case.

Author: Joseph Fitsanakis | Date: 13 November 2019 | Permalink