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Recommended Reading: The Swiss Cryptography Machine Maker Owned by the CIA
Switzerland has a well-earned reputation for producing high-quality machinery and engineering, mostly produced by small and medium-sized businesses making equipment like machine tools, printing presses, and lifts. For the same reasons, Switzerland boasts world-class watch companies, most of which share the same prowess in manufacturing and engineering. As it happens, a Swiss company was an industry leader in cryptography machines for several decades in the late 20th century. Founded by a Swede in Switzerland, Crypto AG sold mechanical encoding devices to some 120 countries, including Iran, India, and the Vatican. Although digital cryptography has now rendered cryptography hardware obsolete, such machines were once crucial to international diplomacy, intelligence, and espionage. Crypto AG was a key producer of these machines, helped by the fact that Switzerland is a neutral country. But a recent investigation by the The Washington Post and German public television network Zweites Deutsches Fernsehen (ZDF) have revealed that since 1970, Crypto AG was secretly owned by the CIA and Bundesnachrichtendienst (BND), Germany’s federal intelligence service. The news has since spiralled into a scandal in Switzerland – where neutrality has been a national policy since the 19th century – with the government setting up an inquiry to investigate just how much former officials knew. Building in backdoors According to the Post, Crypto AG founder Boris Hagelin had once hoped to pas...
