Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more

The CIA and West Germany’s Bundesnachrichtendienst (BND) secretly acquired and controlled Swiss encryption maker Crypto AG, whose customers believed they were buying equipment from an independent Swiss supplier. Intelligence services could influence or exploit weaknesses in some of its systems, helping them turn intercepted encrypted communications into readable messages. The operation reached a broad international customer base and became public in 2020.

How covert ownership gave intelligence agencies access

Crypto AG sold encryption equipment to governments and militaries. Its Swiss identity mattered: customers had reason to view a respected Swiss supplier as neutral and independent, rather than as an intelligence asset. The CIA and BND secretly bought the company in 1970 while preserving that public appearance, according to the Washington Post’s 2020 reporting and the National Security Archive’s account of the leaked CIA history.

Control of the company gave the intelligence services influence over more than a single shipment or intercepted message. It allowed them to shape or exploit aspects of products offered to customers, as well as the conditions under which those systems were delivered and used. The arrangement made the vendor itself part of the intelligence operation.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

How Crypto AG equipment enabled espionage

Encryption is meant to make intercepted communications unreadable without the right key. The historical record described by the National Security Archive says intelligence services arranged or exploited weaknesses in some Crypto AG systems so they could recover readable plaintext from intercepted ciphertext. That could expose diplomatic or military communications to services able to intercept the transmissions and take advantage of the weaknesses.

#1 Best Overall
Sale
Samsung T7 Portable SSD 1TB Titan Gray, USB 3.2 Gen 2, Up to 1,050MB/s
  • MADE FOR THE MAKERS: Create; Explore; Store; The T7 Portable SSD delivers fast speeds and durable features to back up any endeavor; Build your video editing empire, file your photographs or back up your blogs all in an instant
  • SHARE IDEAS IN A FLASH: Don’t waste a second waiting and spend more time doing; The T7 is embedded with PCIe NVMe technology that brings fast read and write speeds up to 1,050/1,000 MB/s¹, making it almost twice as fast as the T5
  • ALWAYS MAKE THE SAVE: Compact design with massive capacity; With capacities up to 4TB, save exactly what you need to your drive – from large working files to game data and everything in between
  • ADAPTS TO EVERY NEED: Whether using a PC or mobile phone, count on the T7 for extensive compatibility²; It’s a true team player when it comes to heavy-duty application usage or file-saving
  • HI RESOLUTION VIDEO RECORDING: Record Ultra High Resolution (4K 60fs) videos directly onto the T7 Portable SSD with your favorite camera or mobile devices; Supports iPhone 15 Pro Res 4K at 60fps video and more³

This was not simply a matter of breaking every code by brute force, nor does the available account establish that every Crypto AG product or every customer message was compromised. The advantage came from weaknesses in some systems and intelligence access to the resulting communications. A declassified CIA cable documents Boris Hagelin sending machines similar to the CX-52 to the NSA for testing; the archive also describes a longer relationship between Hagelin and U.S. intelligence.

What the operation was called

The operation’s name varied across agencies and periods. The National Security Archive describes Thesaurus as the earlier name, Rubicon as later BND usage, and Minerva as the name appearing in CIA materials. These names refer to the intelligence operation around Crypto AG, not to different encryption technologies.

Rank #2
Sale
WD 2TB Elements Portable External Hard Drive for Windows, USB 3.2 Gen 1/USB 3.0 for PC & Mac, Plug and Play Ready - WDBU6Y0020BBK-WESN
  • High capacity in a small enclosure – The small, lightweight design offers up to 6TB* capacity, making WD Elements portable hard drives the ideal companion for consumers on the go.
  • Plug-and-play expandability
  • Vast capacities up to 6TB[1] to store your photos, videos, music, important documents and more
  • SuperSpeed USB 3.2 Gen 1 (5Gbps)

How the operation developed

Period What the record says
1950s The leaked CIA history, as described by the National Security Archive, recounts an understanding between Crypto AG founder Boris Hagelin and NSA cryptologist William Friedman that enabled U.S. intelligence exploitation of Hagelin machines.
1970 The CIA and BND secretly acquired Crypto AG, according to the Washington Post and National Security Archive accounts published in 2020.
1970s A declassified CIA cable records Hagelin sending machines similar to the CX-52 to the NSA for testing.
1992–1994 Crypto AG salesman Hans Bühler’s arrest in Iran became a major security crisis and helped bring suspicions about the company into sharper focus, according to the cited investigative record.
1993 Swiss parliamentary oversight findings say Swiss strategic intelligence knew foreign intelligence services stood behind Crypto AG.
February 2020 Washington Post and ZDF reporting disclosed the CIA history and related BND material, prompting Swiss investigations.
November 2020 The Swiss Parliament’s parliamentary oversight committee, GPDel, published conclusions from its inspection, including political co-responsibility by Swiss authorities.

How many countries were affected?

The scale depends on what is being counted. The Washington Post reported in 2020 that the operation reached more than 120 countries. Swiss and archival accounts also use the broader formulation of more than 100 governments. These figures describe a large customer base, but they are not necessarily identical measures: a count of customers is not automatically a count of governments whose communications were successfully exploited.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

What Switzerland’s investigation found

Swiss parliamentary oversight added an important domestic accountability dimension. GPDel said Swiss intelligence had known since 1993 that foreign intelligence services were behind Crypto AG. Its November 2020 inspection also found “political co-responsibility” by Swiss authorities for the company’s activities. Those findings distinguish what Swiss institutions knew and how the state was implicated from the separate question of which specific communications foreign services could read.

Rank #3
Sale
Lexar D40E 128GB Dual USB 3.2 Gen 1 Type-C Jump Drive, Champagne Silver
  • USB-C 2-in-1 storage OTG: The Lexar JumpDrive Dual Drive D40E features USB Type-A and Type-C connectors in a slim, portable form factor for easy device compatibility
  • Transfer speeds up to 100MB/s: Based on internal testing, performance may vary depending upon the host device, interface, and usage conditions. 1MB=1,000,000 bytes
  • Plug and Play: Widely compatible with USB Type-C smartphones, tablets, laptops, Macs, and traditional Type-A devices, no software installation required. The 360° swivel design allows for easy switching between connectors without the hassle of losing a cap
  • Durable & Compact: The Lexar D40E USB memory stick features a metal enclosure, withstands temperatures from 0° to 50° C (32°F to 122°F), and is lightweight at 26g with dimensions of 70.4 x 16.9 x 11.7mm
  • Security & Warranty: Securely protects files using an advanced security software solution with 256-bit AES encryption. Backed by a Lexar 3-year limited warranty
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

Why the Crypto AG case matters

The case is striking because the intelligence services did not merely exploit a vulnerability in an outside product: they secretly controlled the supplier. The Swiss brand and appearance of neutrality helped make the equipment credible to customers, while covert influence over some systems created an intelligence advantage. The National Security Archive’s account says the internal CIA history called the operation “the intelligence coup of the century.” That phrase reflects the agency’s assessment, not a neutral measure of the operation’s success.

The disclosure also shows why trust in an encryption product depends on more than its advertised technical design. A customer must be able to trust the vendor, the equipment’s implementation, and the conditions under which the product was developed and supplied. In Crypto AG’s case, covert ownership compromised that trust at its source.

Rank #4
128GB USB 3.0 Flash Drive, Mini Thumb Drive Waterproof Memory Stick with Lanyard Hole Plug and Play Portable USB Stick Storage for Computer Laptop Smart TV, Black
  • 【High-Capacity Storage】Effortlessly store all your files with this spacious 128GB flash drive, offering ample room for high-resolution photos, 4K videos, music libraries, graphic design projects, large documents, and more
  • 【Fast Transmission】Harness the power of USB 3.0 technology for rapid file transfers, with read speeds up to 90MB/s and write speeds of 30MB/s. Boost your productivity with quick access to your data—perfect for professionals and creatives alike
  • 【Rugged & Waterproof Design】Built to last, our usb jump drive features advanced UDP packaging technology, ensuring superior durability and waterproof protection. Keep your valuable data safe from spills, rain, and everyday wear and tear
  • 【Universal Compatibility】This USB drive works flawlessly across Windows, Android, Linux, Chrome, and Mac OS. Enjoy plug-and-play convenience with laptops, smart TVs, car audio systems, gaming consoles, and other USB-enabled devices
  • 【Mini and Portable】Compact and lightweight, this mini USB 3.0 flash drive includes a keyring hole for easy attachment to keys, backpacks, or lanyards. Take your files anywhere while ensuring they stay secure and within reach at all times

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.