Governments Are Using Bitcoin Account-Hacking Services

Published at: July 7, 2015

The NSA has been spying on politicians and common citizens, domestically and abroad, for decades now. Now, a recent online hack of private documents has revealed that national governments are able to obtain software services to hack into Bitcoin and other private digital currency accounts through an Italian subcontractor.

400GB of documents captured from a popular international surveillance technology company called Hacking Team has been uncovered by CSO Online’s Steve Ragan. These documents reveal what spy technology is available and how much countries are investing in it.

Bitcoin, Litecoin and other digital currency wallet hacks are one of many services provided by Hacking Team to national governments for anywhere from tens to millions of dollars. Moreover, the Hacking Team has made it to reporters Without Borders’ Enemies of the Internet list for their history of espionage.

The entity that hacked the Hacking Team is unknown at this time, but they managed to release a 400GB torrent file with documents files with details of what they do and who they do it with. It's worth mentioning that the Department of Defense is listed as not currently active while the Drug Enforcement Agency (DEA) has a renewal in progress.

Documents reveal that the FBI had an active maintenance contract with Hacking Team until June 30, 2015. The biggest national spenders on this type of technology are Mexico, with over 5 million Euros; Italy invested over 4 million Euros and Morocco with over 3 million. Keep in mind that the larger and more advanced the country, the less likely they may need the company’s surveillance services.

The countries that the Hacking Team has already done business with include: Egypt, Ethiopia, Morocco, Nigeria, Sudan, Chile, Colombia, Ecuador, Honduras, Mexico, Panama, United States, Azerbaijan, Kazakhstan, Malaysia, Mongolia, Singapore, South Korea, Thailand, Uzbekistan, Vietnam, Australia, Cyprus, Czech Republic, Germany, Hungary, Italy, Luxemburg, Poland, Russia, Spain, Switzerland, Bahrain, Oman, Saudi Arabia, and the United Arab Emirates. Russia and Sudan have been associated with Hacking Team but are currently listed as “Not officially supported”

Recently, Hacking Team's Christian Pozzi was exposed by the hacking incident, as the company’s security engineer's password from Firefox was published as part of the massive data dump. He took to Twitter to issue denials. When these fell on deaf ears, he warned that the 400GB download contained viruses. His Twitter account was compromised and later deleted.

The Hacking Team’s Twitter account has also been compromised, with the unknown hackers publishing a link to the data download and writing:

"Since we have nothing to hide, we are publishing all our emails, files, and source code."

Tags
Related Posts
Law Decoded: Governments vs. blockchain privacy, Sept. 4-11
Every Friday, Law Decoded delivers analysis on the week’s critical stories in the realms of policy, regulation and law. Editor’s note One of the most persistent myths about Bitcoin is its supposed anonymity. More properly termed pseudonymity, BTC wallets are permanently tied to their public keys. Most of you know that. But it took government investigators years of trying to corral Bitcoin transactions on dark web marketplaces like the Silk Road to figure that out. Now, however, blockchain analysis is a growing industry, catering to a range of clients including many of the most shadowy of government agencies. This was …
Regulation / Sept. 11, 2020
Andrew Yang Wants to Make US Elections Fraud-Proof Using Blockchain
Democratic candidate Andrew Yang says he will implement blockchain-based mobile voting if he wins the 2020 United States presidential election. On his campaign website, the blockchain advocate says he believes American citizens should have the option of voting on a mobile device — with blockchain technology used for verification purposes. “It’s ridiculous that in 2020 we are still standing in line for hours” Yang also believes that, in terms of security risks, most voting machines are just as vulnerable to hackers as modern technology is. He wrote: “It’s ridiculous that in 2020 we are still standing in line for hours …
Blockchain / Aug. 22, 2019
The Dangers of Perceived Anonymity: Russian Hackers’ Bitcoin Trail
The cryptocurrencies’ potential to facilitate money laundering and financing illicit activities has long informed Bitcoin-insecure politicians’ hawkish postures on crypto regulation. With the release by the Department of Justice (DoJ) of an indictment of twelve Russian intelligence officers last Friday, which includes a count of an alleged conspiracy to launder money ‘through cryptocurrencies such as Bitcoin,’ statesmen of this bent have procured a powerful supplement to their rhetorical toolkit – a formally recorded instance of a Bitcoin-backed interference into a vital sector of domestic affairs. The only consideration that makes the news look somewhat less haunting for the future of …
Bitcoin / July 16, 2018
Are crypto and blockchain safe for kids, or should greater measures be put in place?
Crypto is going mainstream, and the world’s younger generation, in particular, is taking note. Cryptocurrency exchange Crypto.com recently predicted that crypto users worldwide could reach 1 billion by the end of 2022. Further findings show that Millennials — those between the ages of 26 and 41 — are turning to digital asset investment to build wealth. For example, a study conducted in 2021 by personal loan company Stilt found that, according to its user data, more than 94% of people who own crypto were between 18 and 40. Keeping children safe While the increased interest in cryptocurrency is notable, some …
Adoption / Feb. 26, 2022
Has New York state gone astray in its pursuit of crypto fraud?
The Empire State made two appearances on the regulatory stage last week, and neither was entirely reassuring. On April 25, bill S8839 was proposed in the New York State (NYS) Senate that would criminalize “rug pulls” and other crypto frauds, while two days later, the state’s Assembly passed a ban on non-green Bitcoin (BTC) mining. The first event was met with some ire from industry representatives, while the second drew negative reviews, too. However, this may have been more of a reflex response given that the “ban” was temporary and principally aimed at energy providers. The fraud bill, sponsored by …
Adoption / May 2, 2022