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Crypto AG
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== History == Crypto AG was established in Switzerland by the Russian-born [[Swedes|Swede]], [[Boris Hagelin]].<ref name=LT2015>{{cite news|last=Atmani|first=Mehdi |url=https://www.letemps.ch/suisse/lune-miel-secrete-entre-suisse-renseignement-international|title=Agents doubles|newspaper=[[Le Temps]]|date=21 August 2015|page=11|language=fr|access-date=2020-02-13}}</ref> Originally called AB Cryptoteknik and founded by [[Arvid Gerhard Damm]] in [[Stockholm]] in 1920, the firm manufactured the [[C-36 (cipher machine)|C-36 mechanical cryptograph machine]] that Damm had patented. After Damm's death, and just before the [[World War II|Second World War]], Cryptoteknik came under the control of Hagelin, an early investor. Hagelin's hope was to sell the device to the [[United States Army]].<ref name="Dugstad&Kibar">{{cite web|url=https://www.dn.no/magasinet/dokumentar/vaduz/stockholm/oslo/den-skjulte-partneren/1-1-5278127|title=Den skjulte partneren|last1=Dugstad|first1=Line|last2=Kibar|first2=Osman|date=2015-01-02|website=Dagens Næringsliv|language=no|url-status=live|access-date=2020-02-13|archive-url=https://web.archive.org/web/20190613110311/https://www.dn.no/magasinet/dokumentar/vaduz/stockholm/oslo/den-skjulte-partneren/1-1-5278127 |archive-date=13 June 2019 }}</ref> When Germany invaded Norway in 1940, he moved from Sweden to the US and presented the device to the military, which in turn brought the device to the [[Signal Intelligence Service]], and the code-breakers in [[Arlington Hall]]. In the end he was awarded a licensing agreement. 140,000 units were made during the war for American troops. During his time in [[United States]], Hagelin became close friends with [[William F. Friedman]],<ref>{{cite web |url=https://theintercept.com/2014/10/02/the-nsa-and-me/ |title=The NSA and Me |work=The Intercept |first=James |last=Bamford |date=October 2, 2014}}</ref> who in 1952 became chief cryptologist for the [[National Security Agency]] (NSA) and whom Hagelin had known since the 1930s.<ref name="Dugstad&Kibar" /><ref name="Miller" /> The same year, Hagelin's lawyer, Stuart Hedden, became deputy commander in [[Central Intelligence Agency|CIA]], Inspector General. In 1948 Hagelin moved to [[Steinhausen, Switzerland|Steinhausen]] in Switzerland to avoid taxes.<ref name="Dugstad&Kibar" /> In 1952 the company, which until then had been incorporated in Stockholm, also moved to Switzerland.<ref name="LT2015" /> The official reason was that it was transferred as a result of a planned Swedish government nationalization of militarily important technology contractors.<ref name="Dugstad&Kibar" /> A holding company was set up in Liechtenstein. During the 1950s, Hagelin and Friedman had frequent mail correspondence, both personal and business alike. Crypto AG sent over new machines to the NSA and they had an ongoing discussion concerning which countries they would or would not sell the encryption systems to, and which countries to sell older, weaker systems. In 1958 when Friedman retired, [[Howard Barlow|Howard C. Barlow]], a high-ranking NSA employee, and Lawrence E. Shinn, NSA's signal intelligence directory in Asia, took over the correspondence. In June 1970, the company was bought in secret by the CIA and the West-German intelligence service, [[Federal Intelligence Service|BND]], for $5.75 million.<ref name="Miller" /> This was effectively the start of Operation Rubikon.<ref name=":0" /> Hagelin had first been approached to sell to a partnership between the French and West-German intelligence services in 1967, but Hagelin contacted CIA and the Americans did not cooperate with the French. At this point, the company had 400 employees and the revenue increased from 100,000 [[Swiss franc]] in the 1950s to 14 million Swiss franc in the 1970s. In 1994, Crypto AG bought InfoGuard AG a company providing encryption solutions to banks.<ref name=LT2015/> In 2010, Crypto AG sold G.V. LLC, a Wyoming company providing encryption and interception solutions for communications.<ref>{{Cite web|url=https://wyobiz.wy.gov/business/FilingDetails.aspx?eFNum=198186114178190081165085037120031245237103033255|title=Business Entity Detail - Wyoming Secretary of State|website=wyobiz.wy.gov|access-date=2020-03-08}}</ref> In 2018, Crypto AG was liquidated, and its assets and intellectual property sold to two new companies. CyOne was created for Swiss domestic sales, while Crypto International AG was founded in 2018 by Swedish entrepreneur Andreas Linde, who acquired the brand name, international distribution network, and product rights from the original Crypto AG.<ref>{{Cite news|url=https://www.washingtonpost.com/graphics/2020/world/national-security/cia-crypto-encryption-machines-espionage/|title=The intelligence coup of the century |first=Greg |last=Miller |date=February 11, 2020 |newspaper=The Washington Post|language=en|access-date=2020-03-08}}</ref> In 2020, it was established following a parliamentary investigation that the Swiss government and its intelligence services were aware of the spying activities of Swiss-based Crypto for many years and had "benefited from the US-led spying".<ref>{{Cite web|url=https://www.swissinfo.ch/eng/business/no-official-outcry-in-swiss-crypto-spying-affair/46223594|title = No official outcry in Swiss Crypto spying affair| date=25 December 2020 }}</ref> The company and its history were the subject of [[BBC Radio 4]]'s ''[[Archive on 4]]'' programme in May 2021.<ref>{{cite episode| title= A Spy in Every Embassy| series= [[Archive on 4]]| credits= Presenters: Peter F Muller, David Ridd; Producer: John Forsyth; Readers: Lanna Joffrey, Annette Kossow, Blanca Belenguer, Mike Christofferson and Thilo Buergel| network= BBC| station= [[BBC Radio 4]]| airdate= 15 May 2021| url= https://www.bbc.co.uk/programmes/m000w499 | accessdate= 15 May 2021 }}</ref>
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