Intelligence Agencies Used Front Company for Technical Surveillance

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The Swiss government has ordered an inquiry into a global encryption company based in Zug following revelations it was owned and controlled for decades by US and German intelligence.

Encryption weaknesses added to products sold by Crypto AG allowed the CIA and its German counterpart, the BND, to eavesdrop on adversaries and allies alike while earning million of dollars from the sales, according the Washington Post and the German public broadcaster ZDF, based on the agencies’ internal histories of the intelligence operation.

“It was the intelligence coup of the century,” the CIA report concluded. “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.”

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The operation, codenamed Thesaurus and then renamed Rubicon in 1980s, demonstrated the overwhelming intelligence value of being able to insert flaws into widely sold communications equipment. The CIA’s success over many years is likely to reinforce current US suspicions of equipment made by the Chinese company Huawei.

Neither China or the Soviet Union bought Crypto encryption devices, suspicious of the company’s origins, but it was sold to more than 100 other countries.

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