US, German spies plundered global secrets via Swiss encryption firm: report

Image
AFP Washington
Last Updated : Feb 11 2020 | 11:18 PM IST

US and German intelligence services raked in the top secret communications of governments around the world for decades through their hidden control of a top encryption company Crypto AG, US, German and Swiss media reported Tuesday.

The Swiss company was a top supplier of devices for encoding communications to some 120 countries from after World War II to the beginning of this century, including Iran, South American governments, and India and Pakistan, the Washington Post, German television ZTE and Swiss state media SRF reported.

Unknown to those governments, Crypto was secretly owned by the US Central Intelligence Agency together with Germany's BND Federal Intelligence Service, who rigged Crypto's equipment to be able to easily break the codes and read the government's messages.

The Washington Post said a classified internal CIA history of the top-secret program identifies the CIA officers who oversaw the operation and the Crypto executives who enabled it.

And it noted that the company took in millions of dollars while giving Western intelligence access to the secrets of its clients. "It was the intelligence coup of the century," the history says, according to the Washington Post.

"Foreign governments were paying good money to the US and West Germany for the privilege of having their most secret communications read by at least two (and possibly as many as five or six) foreign countries." The arrangement has long been suspected and was alluded to, but never proven, in documents that surfaced decades ago.

The media reports note that while scores of countries made use of Crypto's products, the top Western adversaries, Russia and China, never did.

The CIA had no immediate comment on the story.

Crypto, based in Zug, Switzerland, was reportedly broken into two companies in 2018, with its Swiss client business remaining in that country and the international business and company name being taken over by Swedish investor Andreas Linde.

The Swedish company, Crypto International, called the news reports "very distressing." "We have no connections to the CIA or the BND and we never had," the company said in a statement on its website.

"We are currently assessing the situation and will be commenting once we have a full picture.

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Feb 11 2020 | 11:18 PM IST

Next Story