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1:21
Hello and welcome to Decoder. I'm Neil I. Patel,
1:23
Editor-in-Chief of The Verge, and Decoder is my show
1:25
about big ideas and other problems. Today,
1:27
I'm talking with Joseph Cox, who is one
1:30
of the best cybersecurity reporters around. He spent
1:32
a long time working at Vice's tech vertical
1:34
motherboard, but last year, after Vice imploded, he
1:36
and three other journalists co-founded a new site
1:39
called 404 Media, where they are
1:41
doing some really great work. Somehow, on
1:43
top of that, Joseph also found the time
1:45
to write a new book, which is coming
1:47
out in June. It's called Dark Wire, the
1:49
incredible true story of the largest sting operation
1:51
ever. I can't recommend it enough. It's
1:53
basically a caper, but it involves the
1:56
FBI running a phone network. For real,
1:58
that's the story. See, crime... Like
2:00
drug traffickers represent a market for encrypted
2:02
secures mutations away from the I want
2:04
for Smith's Illegally Arrows novel that gave
2:07
rise to a small industry specialized is
2:09
your phones as the back there is
2:11
that criminals used to conduct business scarcest
2:13
on a lot of reporting on the
2:15
seventy years and the book ends up
2:17
telling a really extraordinary story after breaking
2:20
into a few these encrypted smartphone companies.
2:22
The. Sp I ended up running one itself
2:24
so we could spy and Seminoles around the
2:26
world. And that means the
2:29
F B I had to run a
2:31
start up from company with all of
2:33
the problems of any other tech startup.
2:35
cloud service management, manufacturing and Shipping Aziz
2:37
Customer service expansion scale. The. Company was
2:39
called annum in for about three years,
2:42
he gave law enforcement agencies around the
2:44
world a crystal clear window into the
2:46
criminal underworld, but it ended because it
2:48
was too successful and all ended with
2:50
a massive worldwide raid on criminal organizations.
2:53
Get. The story is while. Now.
2:55
In the modern era, with the rise of
2:57
apps like Signal, most criminals no longer need
3:00
specialized hardware is dedicated services, But that raises
3:02
a whole new set of issues. The.
3:04
Really are bad people out there use
3:06
Intact to help them do bad things.
3:08
but the same tools to keep their
3:10
communications private help give everyone else to
3:13
privacy. To whistleblowers, dissenters, people like you
3:15
and me, there's a deep tension between
3:17
privacy and security. The constantly runs through
3:19
tech industry. And. Use your joseph and I
3:21
really dig into the way tech companies and governments are
3:24
forever going back and forth on. There's.
3:26
A lot going on this one of the affair on
3:28
the front of the the other. Jessica. Joseph
3:43
cost you any cofounder and reporter at
3:45
for for media and incredibly great new
3:47
tech website And you're off the offer
3:49
of a cold dark wire or can
3:51
to Dakota. Thank you so much for
3:53
having me. And. When asked you questions
3:55
I for for and I once i my dark
3:57
wire which is an incredible keeper of a book.
4:00
Highly recommend it. It's of it took out. It's a
4:02
beach read about. Encrypted smartphones. Other
4:04
houses thrive. It's great. It's a it's
4:06
a great read. I once had a
4:08
lot. It's very quickly want to cycle
4:10
up for of for of the new
4:13
Tuck outside the U Cofounder the Sponge
4:15
people tell me what that and starts
4:17
going really quickly so so as some
4:19
listens may know this company called nice
4:22
owner was as episode went bankrupt because
4:24
of a series as pool executive decisions
4:26
and me and my cofounders san Jose
4:28
since hapless a Minute maid or we
4:31
decided to leave. I'm a top own
4:33
primarily. Subscriber: Treason Technology Investigations
4:35
website. We just wanted to make a
4:37
sustainable vehicle for journalism Is we just
4:39
want to keep exposing stuff? We want
4:41
to keep writing stories of all of
4:44
these layoffs in the media industries that
4:46
is getting harder and harder and harder.
4:48
So why not just control sort of
4:50
the website ourselves? A business ourselves like
4:52
other people have done like to sector
4:54
or Case Newton a platform us and
4:57
Spy. But those people we decided to
4:59
take the plunge ourselves is going for
5:01
the really well. What's the most
5:03
important thing you've learned running around Me To misses. The
5:06
gyms and has to come first and as
5:08
always the case. But if you actually put
5:11
the journalism first people respect that and they
5:13
will come and they will pay for your
5:15
words like we just did a piece about
5:17
the exploitation of Ss Seven in the house
5:19
Phones are being tracked in the U S.
5:22
Very complicated story took me a long time
5:24
of people want to pay for that and
5:26
people want to subscribe me want to support
5:28
that work. So since the gyms and and
5:31
stuff will follow fastest novels and media companies
5:33
are doing the not putting the journalism front
5:35
and center. Or you know start
5:37
generating a I previous for Google search sooner
5:39
said we look for time next year I
5:41
encounter that's the first time and is may
5:44
be allergic to Google and I I literally
5:46
may know use a search engine anymore is
5:48
is that a parent or hate it. I
5:51
will have you back since I got for for maybe
5:53
with some here cofounders because I'm very instant hi. this
5:55
is going offices you know and I'm rooting for us
5:57
I think to orchestrate but where does have a book.
6:00
Which is also great. I have no idea
6:02
how you started saw me the company. And.
6:05
Wrote a true crime book at the
6:07
same time. You. Must be very sleepy,
6:09
but the book is Dark Wire. The Incredibles:
6:11
The story of the largest sting operation ever.
6:13
There's a lot of reporting that went into
6:15
it on both sides, on through as the
6:17
high side of the criminal sides. Let's start
6:19
at the beginning and lamp that timeline. It.
6:22
Feels like the the book begins with
6:24
smartphones in the two thousands. Criminals.
6:27
Are exceptions are great but the government can
6:29
read with on them. What? Happened
6:31
sir. It starts mostly with Blackberry
6:33
Like criminals. started using Bbm Blackberry Messenger
6:36
because it was seen as being more
6:38
secure and for a while it was.
6:40
It was better than ordinary text messages,
6:43
but you know the far as started
6:45
looking at that including the Royal Canadian
6:47
Mounted Police said it is very large
6:49
operations where they managed to read a
6:52
ton of Bbm messages. So. Some.
6:54
Sort of like geeks or drug traffickers.
6:56
A combination of those they saw making
6:58
customized blackberry is where they taken the
7:01
microphone out, the Gps out the cameras
7:03
well and it basically basically changes the
7:05
Blackberry Winter really secure encrypted device they
7:07
as encrypted email on the on to
7:09
their as well. That's not the end
7:11
of it though, of course cop starts
7:14
to catch up. With that said in
7:16
the criminals have to make more advancements
7:18
as well and what you basically have.
7:21
Is why I see is like a
7:23
shadow tech industry where where are usually
7:25
obsessed with you know the new Aslan,
7:28
out some of the new Google announcement,
7:30
whatever is and then you have these
7:32
top two drug traffickers who are excited
7:35
for the voice scrambling feature on a
7:37
new encrypted smartphones and the really is
7:39
brand loyalty. In the same was a
7:41
lot of us a loyal to Apple
7:44
or Google, whoever all loyal to an
7:46
encrypted messaging apps. There really is this
7:48
massive industry that really drives foods. Not
7:51
only. Book criminals are
7:53
able to do logistically as
7:55
in plants, most high tongue
7:57
cocaine shipments basically very easily.
8:00
They also radically change the conversation
8:02
around privacy encryption in law enforcement
8:04
as well. So. There's a
8:06
market for these products. Like he said,
8:08
brand loyalty. The first companies that start
8:10
are really doing that most. Basically you
8:12
can do which is the running their
8:14
own Blackberry messaging server which allows them
8:17
to control the encryption keys. These.
8:19
Companies quickly run follow the law
8:21
because they're providing services criminals. They
8:23
get arrested. Other competitors arise.
8:25
The big one that is introduced early
8:27
on the book is a coming up.
8:30
Phantom Secure. How did Phantom Secure avoid
8:32
the problems that. For the first
8:34
when the company's ran into. Some. What
8:36
they did was bother than just
8:38
customizing the blackberry, all adding their
8:40
own Blackberry server. They added the
8:42
encrypted email feature which is why
8:44
Sluggish of A see the time.
8:47
they allows these drug traffickers including
8:49
the Cinema Cartel the used sentenced
8:51
to communicate securely but they also
8:53
did something interesting. Buses that they
8:55
use a network of resellers who
8:57
know the criminals that a finite
8:59
customer base I would say of
9:01
traffic isn't going to buy the
9:03
science and these sellers know who
9:05
those. People are another element of trust
9:07
that is not like you just walk into
9:10
a shot and by when the sun's a
9:12
least not Ordinarily if the no one sees
9:14
resellers he has to trust them And of
9:16
course a stay. Messy. Woven sell
9:19
you a bad phone for drug traffickers
9:21
this give somebody a target to go
9:23
to complain about it says it's already
9:25
same with Apple like it or if
9:27
address as a cast aside I gonna
9:29
go Mona Tim Cook course and an
9:31
angry emails to Microsoft or whatever the
9:33
somebody here to to be held accountable
9:36
fans. That. Does it benefit? I'm a
9:38
curse a source of these companies because those people
9:40
ended up being targeted by the Sp Ice as
9:42
a way to get into these companies as well.
9:44
To he of honestly as a franchise
9:46
follow your your local franchise owner and
9:48
that person is to say some local
9:51
customer support for the drug dealer but
9:53
also the place where law enforcement can
9:55
apply pressure on the that last because
9:57
eventually you know does fall apart but
9:59
it's. Like that was the dominant.
10:02
Method. For quite awhile. and Phantom Secure
10:04
is really when the book opens without a
10:06
long story. it was Phantom Secures. At
10:09
the heart of the whole story. Yeah.
10:11
I mean I think these hardens and for
10:13
to phones as source will this be I
10:16
cause I'm have been around basically for a
10:18
decade before that was about both us and
10:20
then you have these customers phones. Now you
10:22
have complicated stuff that I'm sure we get
10:24
into with criminals actually turning to signal and
10:26
more consumer apps but that was the sources
10:29
timeframe do you had of these companies and
10:31
that's basically how long it took the the
10:33
F B I and other law enforcement agencies
10:35
to get a handle on it and ten
10:37
years is like ancient history when it comes
10:40
to the F B. I or or
10:42
law enforcement or surveillance techniques right
10:44
sites for a while. Criminals.
10:47
Were using these phones not openly, but they
10:49
basically didn't have to worry about the yes
10:51
to think about it. They bought one of
10:53
these phone for hundreds or thousands of dollars
10:55
for six months subscriptions and then they could
10:58
go to a cocaine deal like it really
11:00
was and. Yeah,
11:02
you gotta as a story. The beginning Where. And
11:05
the sort of consumer messaging platform
11:07
is the criminals. He's codewords, animate,
11:09
Say. Okay, switch to the secure phones
11:11
and now I have as if the
11:13
kilos of cocaine straight out know hedging
11:15
and this product works for. Major.
11:18
Drug traffickers? What led to the downfall of
11:20
this First Way, which I think Phantom secures
11:22
kind of the major symbol of the first
11:24
wave. What led to the down for. The.
11:27
Sp I started Target Sense insecure by
11:29
well a couple of different ways for
11:31
the end up doing is slipping a
11:33
distributor he says he signs and they
11:36
oppose You need to get close to
11:38
the Ceo, the Phantom secure with some
11:40
ankles in some ram Us that happens.
11:42
Ramos make some very incriminating statements to
11:45
the S B I and undercover operations
11:47
and they arrest him and they say
11:49
you need to put back to into
11:51
Phantom secure and let us read all
11:53
of the messages as the ten thousand
11:56
users or whatever. Samson or we're going to
11:58
arrest you. For various. M
12:00
C F B I don't get
12:02
that back to Ramos tries to
12:04
escape, he merely gets away. I
12:06
won't spoil exactly what happened. this
12:08
is very dramatic and and they
12:10
arrest the militia doesn't I'm secure
12:12
spots yes although the sp I
12:14
did not get that back to
12:16
then he ushered in this way
12:18
ease of paranoia in cook the
12:20
phone industry where the sellers realized
12:22
oh. We. Can't do this
12:24
anymore. The gold rush of selling
12:27
encryption to drug traffickers is basically
12:29
over. Always gonna be over soon.
12:32
Yeah. You describe out certain like lavish
12:34
parties for their swords and honestly drugs
12:36
these resellers were throwing for themselves. Of
12:38
these companies that mostly men who ran
12:40
all these companies were throwing because this
12:42
was the easiest money that any of
12:44
them. Her roommate and at. Thirty.
12:47
Cents. Yeah and some
12:49
people go on the run, some
12:51
of them made to use with the
12:53
authorities. A century later, some of
12:55
them to shut down the company's entirely
12:57
because they presumably decide this is
12:59
not worth it. Like we cannot provide
13:02
these tools to criminals anymore As
13:04
you just say, like he, most places
13:06
in the world is is not a
13:08
crime to sell and encrypted phone
13:10
Know to make a piece of encryption
13:13
software uncontroversial. Guessing that's a good
13:15
thing as Mississippi illegals to make encryption
13:17
technology. it gets complicated. Legally
13:19
and ethically when you are deliberately
13:21
facilitating criminal networks and selling to
13:24
those crime that works and that's
13:26
what a lot of these companies
13:28
that. We. Have
13:30
take a quick break from your back. Support.
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the Macintosh images of Cox author of Dark
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Wire that how the F B I ended
16:35
up not only intercepting that actually running and
16:37
encrypted. To
16:40
set the snakes, just describe how the
16:42
Feds classes a public health center secure
16:44
which ran an encrypted for network at
16:46
Blackberries and that mud hole in the
16:48
model. So
16:52
this raises to about twenty eight him
16:54
that gold rushes over that ten years
16:56
of parties come to an end and
16:58
somehow. Instead. Of another
17:00
company or another strategy coming
17:02
out of the criminal world,
17:04
the F B I launches.
17:07
The. Next Generation encrypted messaging platform
17:09
for drug dealers and called
17:12
Adam. How is it
17:14
that the F B I launches the big competitors?
17:16
Your lead to just that's the heart of the
17:18
book. and it to me, it's just the funniest
17:20
thing and the entire world. So when
17:22
Sansom is set down, there is
17:25
something as a vacuum there for
17:27
ten thousand customers. They need to
17:29
get back of an encrypted messaging
17:31
platform as soon as possible. When
17:33
you're a drug trafficker, time is
17:35
money, oversee, and if you're not
17:38
moving drugs, you are losing many.
17:40
so somebody who call themselves ask
17:42
you. Makes. A deal with the
17:44
Spr and they say already making my
17:46
own and crypto phone company would you
17:49
like to use it in your own
17:51
investigations And I cannot stress enough what
17:53
an incredible Eisa is Both ask you
17:55
cause it's not just like hey I'm
17:58
going reform on this one criminals. Patients
18:00
like: I'm giving you a tech startup and
18:02
you can grow it like I've done a
18:04
Strapping Us A Lucky Way pulling it sends
18:06
you can now growers and you can get
18:08
your hockey stick grow for whatever Silicon Valley
18:10
time you want to use and you can
18:12
put in your back to in return. Please.
18:15
Don't prosecute me to crimes are you may
18:17
or may know to in the seats and
18:19
is just an incredible deal and one this
18:22
is absolutely. Tantalizing. To
18:24
the sp I me a p they
18:26
miss their backs on sentence kids now
18:28
become mates their own back to door
18:30
in any way to they want to
18:32
censor. Search. Just. Would.
18:35
Just stick with asked who has the so up
18:37
to the F B I and say I have
18:39
this product would you like to take it over
18:41
and and we will sell it to the criminal
18:43
underworld. The F B
18:45
I has to see. yes. right?
18:48
Bit they have it agree they're gonna
18:50
do this. There's vastly some process. What
18:52
is that process of the a feeling
18:54
of thirst? Did Ceo Jamie as be?
18:56
I don't think the Americans, the senior
18:58
Tuesday a gonna get on board and
19:01
Leslie proves there's actually real So. Working.
19:04
With the Australian Federal Police, the I
19:06
Have p do something of a beta
19:08
test and they sought to roll out
19:10
the phones ask you does in Australia
19:12
to starting with five and then slowly
19:14
ramping up the ice tea stars, intercept
19:16
messages. And very quickly they
19:18
see that one hundred percent of
19:20
the messages at the time or
19:22
criminal internet access affairs know people
19:24
like it's a paranormal chats a
19:26
suicide okay cocaine deal okay methamphetamine
19:28
deal was as us so he
19:30
shows is that is a success
19:32
rates but at that moment. Bsp.
19:35
Eyes and breeding the messages for legal reasons
19:37
and they need to figure out the approval
19:40
process. And there's a really great scene in
19:42
the book where one of the prosecutors Andrew
19:44
Young is trying to get everybody else in
19:46
San Diego on his side to approve us
19:48
and they go round the table and as
19:51
only season drug prosecutors to be doing this
19:53
he isn't is years and he cites know
19:55
this is ridiculous I did Supers you can't
19:57
do this and eventually gets to. Brewer
20:00
the my senior official there and a simple
20:02
pointy and he says i need to see
20:04
the look on their face when I say
20:06
we're going to do this and he approves
20:08
it and interestingly he's an outsider. He's never
20:10
really been and the O J until he
20:12
was appointed so he has his outside perspective
20:14
of but why don't we just run around
20:16
Tech Company has a great idea that I'd
20:18
say go for it's I don't as it
20:20
would have got off the grounds. If.
20:22
I wasn't the outside. Perspective.
20:24
Necessarily to study, O J is
20:27
not the best place to run
20:29
a move fast and break things
20:31
text up. Obviously. So. Did this
20:33
is a my next lesson is the may have to run it. Them.
20:36
Have customers and resellers and I'm assuming they
20:38
need to fix things when they break a
20:40
mate. Need to have uptime. How did the
20:42
F B I run a phone company The
20:44
phone companies are bad at running some companies
20:46
out of the F B I run a
20:48
sensible has ever seen you since he was
20:50
have to do for a legitimate company the
20:53
sp I had to do here so he
20:55
has a higher higher developers some of which
20:57
I spoke to and they had no idea
20:59
they were actually working for the Us be
21:01
I stare to fix bugs introducing seats as
21:03
was that sources saying the F B I
21:05
had to pay for. The technical infrastructure
21:07
that was inclusion of Sim cards or
21:09
servers or anything like that they had
21:11
to deal with. Sipping the phone says
21:13
one point where stock is running low
21:16
in one part of the world's the
21:18
F B I flies a Gulfstream Jet
21:20
packs was duffel bags of Google pixels
21:22
to introduce more stocks or something or
21:24
Google pixels and ever been sets in
21:26
the history of Texas is exactly which
21:28
could have been a slight risk I
21:30
mean for other see all of those
21:33
batteries are playing but other source of
21:35
another thanks But every. Problem you imagine
21:37
a tech company was have they had
21:39
to deal with as well including hat
21:41
is paying people running every single aspect
21:43
of it, the marketing. trying to get
21:45
a grip on some of these criminal
21:47
markets where the resellers with say well
21:49
if you switch to our platform will
21:52
give you a discount this three hundred
21:54
dollars or something like that. and it
21:56
was also a little bit of mystique
21:58
in that when you went. Company's website
22:00
you couldn't get in unless you enter
22:02
the coast you got from a result
22:04
A kind of reminds you the early
22:06
days of was a google Plus weather
22:08
like you have to know somebody to
22:10
get an analyst. I came together to
22:12
the point where the sp I. Mean
22:16
they are running in a successful take Company
22:18
eventually grows the something I twelve thousand devices
22:20
Which doesn't sounds like a lot in the
22:22
grand scheme of things, but I speak of
22:24
them. Sansom Secure was somehow the F B.
22:26
I said it better than some of the
22:29
the criminal companies. Who was
22:31
in charge of Adam was it does have a
22:33
Ceo was or public face was at a committee
22:35
homework. Ask. You. Was.
22:37
In charge of the day to day
22:39
operations of the company, There were various
22:42
people insides the company to try to
22:44
take it over. Basket was the one
22:46
who basically pools assaults for most things.
22:48
Yeah, I'm gonna push this update with
22:51
us. Those things I think we should
22:53
hire this person's but. Behind.
22:56
Every single decision says the constant.
22:58
Sadly we presence of Cspi offices
23:00
developers have no idea the criminals
23:02
have no idea and neither did
23:04
the people saying the phones bus
23:06
a kind of think of it
23:08
as like. A V C or
23:10
like an investor who likes isn't really in
23:12
the public for the kind of pulling the
23:14
strings on the banks. That's how I see
23:16
the F B I and this is in.
23:18
they does get final approval on when I
23:20
don't put that in the phone because I
23:23
will actually make a job harder to put
23:25
that in two thousand improve our back door
23:27
and it was stuff like but who gives
23:29
them. A reduction image feature
23:31
both boos secretly make it's
23:33
the phone copies the recently
23:35
and business and success. So
23:37
Cspi is like V C
23:39
Last Tax Northstar Flasks Ultimate
23:41
Products Manager I guess but
23:43
ask you is the faces
23:45
at least credibly else? That's.
23:48
The most complicated decoder structure answer I
23:50
think we've ever seen. Why did the
23:52
Sci Trust ask who are? Here's here's
23:54
a central player Take him to them
23:56
in their the face. Did.
23:58
Seem like there's a lot excessively. Know who
24:00
that was yes they knew who
24:02
was and you're right this is
24:04
absolutely trust their i think he
24:07
was that is ask you did
24:09
anything to sources go behind yes
24:11
the icebox their agreement would be
24:13
voice you know be remove fall
24:15
apart and a to potentially face
24:17
prosecution in the future. I feel
24:19
like Ascii was probably in a
24:21
corner and when you a part
24:23
of this very violence underground industry
24:25
this is sort of your last
24:28
resort and this is your way
24:30
out so you don't get kills
24:32
by somebody and you can hopefully
24:34
remain free as well. Sir.
24:36
Ask who has this hilarious see
24:38
a job. Where. They
24:40
report to the as behind a Fps driving lot of.
24:43
Literally. Tax features but they have to
24:45
grow the company right that there's a vacuum
24:47
after Phantom Secure goes away and M could
24:50
potentially take over. Is actually does succeed but
24:52
in the middle the in the at to
24:54
as I was call it they've gotta go
24:56
when and they. Act like a
24:58
text, Aren't there a third? Their disruptive
25:01
squeezer competitors. How did they actually win?
25:04
So they won in a couple of
25:06
ways. The first is that by they
25:08
simply made a better products then seven
25:10
got a lot of the F B.
25:12
I made a better product as assess
25:14
certain Yes, they made a better encrypt
25:16
a smartphone for criminals of all of
25:18
these fancy interesting features, a hat and
25:20
people loved it. People flock to At
25:22
and they would tell their friends about
25:24
this and they would encourage some other
25:26
criminals to get on board as well.
25:28
The other part of how it really
25:30
grew with that symbol Controversially the F
25:32
B I and. His partners investigated another
25:35
company for Sky. This was very
25:37
similar sense and secure both stimulus
25:39
when of uncle encourage shots. The
25:41
plan was deliberately the sp or
25:44
has their company sitting in the
25:46
wings. And. Then we're going
25:48
to shut down Sky. Those users
25:50
are gonna have to go somewhere.
25:52
why don't we have them run
25:54
over to are trapped essentially or
25:56
honey pots? And that was the
25:58
most transformative moment before. The company
26:00
he grew i think free times
26:02
and. The F B I agents
26:05
die heard from they were saying like
26:07
it was like starting all over again
26:09
and they really did have hockey stick
26:11
growth where they now had in tiny
26:13
countries on the they were getting new
26:16
criminal syndicates every few days and it
26:18
was the slightest exponential growth source of
26:20
in the same way when use police
26:22
and app and he goes viral only
26:24
hear the sp I did some flights
26:26
I dunno maybe to dear Jay says
26:29
investigates said the i'm anti competition philosophically
26:31
shut down the compositor essentially yeah I.
26:33
Will you be told Marseille Gov Tim for to
26:35
they could go arrest to their competitors they would
26:37
do it and the F B I was allowed
26:40
to go are a second nutters. that's emotions nobody
26:42
that as massive growth. Or
26:44
they run. and eight of us really handle this growth out
26:46
of his skill. Sourcing network infrastructure
26:48
diagrams of the company and yet
26:50
the used a W S as
26:52
as a salary success That was
26:55
you. who does Google infrastructure as
26:57
well. They use commercial providers and
26:59
yeah I'm also see that was
27:01
been security concerns as well but
27:03
that kind of hammers the point
27:05
home. This they couldn't just runs
27:07
like the Sb Eyes tech company
27:09
because when make sense they really
27:11
really had to emulate the successful
27:13
players and the space. And that
27:16
includes these. Very expensive. Unlimited
27:18
data centers includes using a to be West
27:20
to accelerate your traffic and try to get
27:22
move reliable and have a lot of up
27:24
time. It was literally as they were just
27:26
trying to run the most successful tech company
27:29
they could. With a back
27:31
door to law enforcement with a bite or so
27:33
that was. I'm a very small capita is a
27:35
success because they are won four cents. A strange
27:37
thing about all this is the as as running
27:39
this phone network that encrypt us on our of
27:42
an old. They're. Not
27:44
allowed to just use the stuff
27:46
either. To be careful in when
27:48
they burn the customers actually prosecute
27:50
them. They have to officer knighted
27:52
states. We. Have a constitution, their rules
27:55
about what you can use and when you can
27:57
use it if the and warrants. In some ways,
27:59
it feels like other countries able to use this
28:01
information much more effectively than the F B I
28:03
was. Yeah, there's a constant tension
28:05
in which the authorities and I mean
28:07
more the Europeans or the ones in
28:09
other countries they really want to ask.
28:11
They want to see this drug shipments.
28:13
They want to stop this assassination. And
28:16
able to see these weapons and especially
28:18
for the threats to life. Psp I
28:20
know it's just have to act is
28:22
when they see somebody is going to
28:24
kill was they call Essex We just
28:27
sit there legally a wasn't White House
28:29
for Se Cleats Day. I'm treated it
28:31
as such and he can that tension
28:33
of well if we go too far
28:35
too quickly people are gonna realize as
28:37
a backdoor and something very unusual happens
28:39
where they would be a threat to
28:41
life. maybe a biker gang want to
28:44
kill somebody the authorities would intervene. And
28:46
improv an unsuspecting the phone. The criminals
28:48
would suspect somebody else in their own
28:50
organization and I want to kill them
28:52
and site is endless by where the
28:54
violence the Sp Ice has to deal
28:56
with and is basically getting out of
28:58
control. Towards. The end. How.
29:00
Do they keep any of this a secret? I hear
29:02
what you're saying. No one ever suspects their phone. But.
29:05
I feel like the reason they have the found this
29:07
because I suspect the regular phones. Is
29:10
it's just that. They. Have a false
29:12
confidence and annum Phones. What?
29:14
How to? Honestly? how do they keep a secret? I'm.
29:17
Genuinely shocked they delete as an really
29:19
really genuinely salts this didn't go out
29:21
early. Earth Yes. Be I ran this
29:24
for like basically for years more and
29:26
one way they did to that is
29:28
by only bringing agencies that they've really
29:30
really trust is there are countries who
29:32
would not linked in. I mean countries
29:35
like Serbia for example where understand a
29:37
lot of the violence took place. Missing
29:39
some of the corruption as well. Yes
29:41
Be I did not Loops I'm in
29:44
to the secret on one side. It
29:46
was a very large. Operation with sixteen
29:48
countries or something like that towards
29:50
the end. On the other it
29:52
was only very very very trusted
29:54
agencies and basically people at a
29:56
loss as these. Relationships.
29:59
They would in. Each other from sort of
30:01
other operations. They receive friends a lot
30:03
of cases and if they weren't friends
30:05
are the start. they were the encino.
30:07
They were telling me how they're going
30:09
to the pub in the bars together
30:12
a and getting drunk and celebrating. So
30:14
it really was this big mutual decision
30:16
to keep it under wraps. Which is
30:18
not to say the criminals did not
30:20
get suspicious because they absolutely did towards
30:22
the end and was other operations in
30:24
to anchor chatting sky those two other
30:26
companies. Some criminals did learn about those
30:28
beforehand so leaks do happen. Based
30:31
basically a miracle to this one. We
30:35
have six out of it breaks and Rebecca. Hi
30:46
This is got our I'm at Elson
30:49
and Where The House Ago house. It's
30:51
kind of unfair to call his cohorts.
30:53
I'm really The Houses is my Robin
30:55
Givhan for Sissy, Clear on what the
30:58
says, when? Anyways, where The House of
31:00
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markets. This.
31:51
Week on the pets were back to pitches.
31:54
And. This one's. Coming. From my
31:56
job. Of plants
31:58
as a I does is. It
32:00
led to podcasts producers become
32:03
ten times more productive. How
32:05
much are you charging the pets? Were
32:07
charging ninety nine dollars and Josh
32:09
came in right before we double
32:11
their prices. What's
32:14
keeping something like? A restrain from just gone
32:16
like yes we do all the say
32:18
i now stuff killed So there's a
32:20
lot of these older companies that are
32:22
tacking on a i had that kind
32:24
of the issue they're talking it on
32:26
You Built this really quickly is the
32:28
seventy miles was was the most. How
32:33
do you build a moat when you're
32:35
building with a I? Guess. This
32:37
week on the pitch. Go. Right now
32:39
and subscribed to The Pits wherever
32:41
you listen to podcasts. Well.
32:44
As last time, you noticed a
32:46
federal comments period. You. Know the
32:48
type federal government is passing a law, are
32:50
changing the rules and they want to hear
32:52
what you think about it. Well.
32:55
One of those com and periods just kicked
32:57
off and runs for the next two months
32:59
and it's a big one. The
33:03
Federal government wants know what you
33:05
think about their plan to reschedule
33:07
marijuana, not what time you take
33:10
the smoke breaks for Coli? Sorry
33:12
of like this. New schedules totally
33:14
confuses. The Federal government is basically
33:16
trying to read categorized week and
33:19
it could happen as soon as
33:21
election day. The President says it's
33:23
a big deal. This is monumental,
33:25
but we reached out to a
33:28
cannabis policy reporter at Politico task
33:30
if she thought it was monumental,
33:33
And she said yes, but
33:35
also not. Our
33:39
conversation is waiting for you. Add today
33:41
explained. We're
33:47
back I'm talking for for media source
33:49
of talkspace Absolutely Wilds restored sp I
33:51
running six months from company for criminals
33:54
that was not in fact to secure
33:56
his it's Massive project Adam How together
33:58
for a few years. Then things
34:00
get tricky. You've
34:03
got all the problems. A regular start up,
34:05
we had a period of yourself. Then you
34:07
have all these other sailed already problems that
34:10
are services getting bigger and it's leading to
34:12
an escalating cycle of violence that we have
34:14
to keep stopping and we have to. Keep.
34:17
It a secret. And. Things are
34:19
wreaking by Twenty Twenty One. People are starting
34:21
to get the sense this isn't and work
34:23
described sort of the beginning of the and
34:25
here. Towards the sounds of
34:27
Twenty Twenty One, it becomes pretty clear
34:30
to the F B I agents I've
34:32
spoken to another officials physicists a site
34:34
and tenable there are more more masters
34:36
coming in every single day. The F
34:38
B I can't keep. I think Momentum
34:41
is the term that was used. With
34:43
the influx of messages and uses they
34:45
are too successful to the point where
34:47
what happens if a message for through
34:49
the cracks and your and a com
34:52
soccer threat to life or something like
34:54
that I'm actually did happen at one
34:56
point. As in one person was
34:58
killed on the sp. Eyes up.
35:00
Now what happens if we let
35:02
that continue? So they decide that.
35:05
The. Date is going to be June Seventh.
35:07
Twenty Twenty One. Saw.
35:09
The reason that stuff is growing
35:11
to an enormous size. Small safer
35:13
A Legal Logistical reasons that that's
35:15
when the to court order the
35:17
obtains was gonna run else anyway.
35:19
So they start this massive. Flurry
35:22
of activity leading up to June Seventh.
35:24
where's like, well now we're going to
35:26
switch this from intelligence tool into like
35:29
an evidence Judicial Tools and we going
35:31
to start investigating these people really, really
35:33
aggressively. So I've read tens of thousands
35:35
of pages of police reports related to
35:38
an arm and Mrs. When you start
35:40
to see the cops on the ground
35:42
in Europe following cause, dissing the normal
35:44
text messages, getting hotel bills, getting the
35:47
criminals credit card information, source of school
35:49
a normal. Investors techniques we
35:51
all know about. but now that ramp
35:53
those up, applying them to these messages
35:56
with the hope of pressing. Eight
35:58
hundred people is our list. Towards the big
36:00
day which is just like an unfathomable amounts
36:02
of better to is to have a one
36:05
day that you think of a big grade
36:07
or well as greats literally multiply that by
36:09
a hundred. And so eight
36:11
hundred people actually got arrested. Her And how many countries.
36:14
I. Actually don't know how many countries
36:16
but he was eight hundred people arrested
36:18
and a nom was act is in
36:20
more than a hundred different countries and
36:23
of the end they had something like
36:25
twenty two million messages and. Nearly.
36:27
Ten thousand police acted on
36:29
that one single day and
36:32
like this global relay race.
36:34
Other arrests embrace. To.
36:36
And what was their go signal to the
36:38
side Email being like Tuesday I think of
36:40
that was basically a meeting where where the
36:42
a Felix however bodies this is a date
36:44
when not going to negotiate it when organ
36:46
the changes this is a day you have
36:48
to figure out. What? You're going to
36:50
do now to arrest the people the you want to
36:53
target. How did they keep that secret?
36:56
Ah I mean this is when stuff
36:58
does start to get a little bit
37:00
wobbly as well as the last size
37:02
of the company. Some users to start
37:05
to get a little bit suspicious because
37:07
more more customers are coming on board.
37:09
has some of them even start to
37:11
cool the phones Cursed because I give
37:13
one to a friend's he joins it.
37:16
he measly guess Raiders Simple as you
37:18
start to get paranoid about will. maybe
37:20
something is wrong with these phones. Fortunately
37:22
for the sp eyes this is around
37:24
sources the May Twenty Twenty. One time
37:26
period and they're ready to go in early
37:29
June. So. They have
37:31
the raids everyone gets arrested out of a
37:33
set it down to they'd put up like
37:35
out laughing skull imagery on the web page
37:38
to they tell everyone as as go us.
37:40
Is. Actually not too dissimilar from that. Neighbour
37:43
thinks they put a big message on the
37:45
website saying we seem running this company the
37:47
entire time. He's a little form where you
37:49
to submit your information for us to tell
37:51
you this your implicated in this investigation of
37:54
the Sleep. If I was a criminal I
37:56
would not allow that form as yeah V
37:58
re re stupid did anyone. Before I
38:00
don't know but why did by why
38:03
did see his ass A day or
38:05
two after that came up I see
38:07
signs. It's a random tweet from somebody
38:09
saying hey my phone is not working
38:12
I didn't include And the book social
38:14
Sciences pumped misguided know get the memo
38:16
says cities on Reddit looking for customer
38:18
support that's incredible. Assess the and news
38:21
and I'm right. It's the end of
38:23
this moment where the Sci runs a
38:25
phone company for criminals you mentioned earlier
38:27
in episode. Now there's must consume ritual
38:29
specially. Offer this. Summer. John practice
38:32
signal which is and encrypted the some
38:34
other ones is that weren't all moves
38:36
as a replacement for these companies as
38:38
it is the absence of hardware as a
38:40
move to suffer. So. After
38:42
the company was shut down I spoke
38:45
to people who sell if of defense
38:47
to criminals and one said is basically
38:49
impossible to build a customer base now
38:51
because customs don't trust their lights are
38:53
not going to buy this phone. Guess.
38:56
What's to say? no to Cspi been
38:58
suggested as one assists and the consequences
39:00
that is. A lot of these criminals
39:03
are moving to Signal, they are moving
39:05
to consumer apps and I just think
39:07
that brings up. A really
39:09
urgent question, which is that what
39:11
happens Now the Sp: I is
39:13
not going to stop investigating encrypted
39:15
communications. they told me as much.
39:18
I snuck into a Law Forefront
39:20
Only conference and one of the
39:22
agents on stage says I'm looking
39:24
forward to the next escalation of
39:26
this operation in Europe. We have
39:28
European authorities say they want to
39:30
scan the contents of encrypted messaging
39:32
see Sam initially, but I could
39:34
easily expands. This is just a
39:36
warning salt for what potentially could
39:38
happen. Now because. Yes,
39:40
The eyes and gonna pass itself on the
39:42
back and go home There and aggressive agency
39:45
has a law enforcement agencies they're going to
39:47
go was a criminals are and in some
39:49
cases as can be Consumer apps. We've
39:51
covered encryption from the consumer side for
39:53
long time. You've obviously covered it. cements
39:55
for one for some criminals. I for
39:57
one time the pressure. On. All of that.
40:00
The where companies to have backdoors around the
40:02
world to break open I message for break
40:04
open signal were the least provide a key
40:06
to the law enforcement agencies. The pressure waxes
40:08
and wanes for the answer for most of
40:10
the companies has been the same trap. Know
40:12
where does not gonna do it Apple says
40:14
the F B I were not gonna a
40:16
mock the for the I phone of the
40:19
shooter in California. The time out and. The.
40:21
Pressure is increasing, especially with things I see,
40:23
Santa, all this other stuff that is obviously
40:26
bad and kind of in the public consciousness
40:28
and a real way now. It
40:30
It's essential tech companies will crack
40:32
The decency wraps will eventually forced
40:34
open our inception. The law enforcement.
40:37
I don't think necessarily the can
40:39
see maps will crack. I don't
40:41
see signal. Changing.
40:43
It's very robust position on so we
40:45
provide minimal data to law enforcement when
40:48
know can. upper back stories will coach
40:50
or anything like that and I trust
40:52
that are you signal every single day
40:54
and I think that says interesting things.
40:56
What I think it will do is
40:59
create incentives for the sp I'd to
41:01
keep trying these highly novel or audacious
41:03
operations and like we to see them
41:05
trying to compromise another encrypted shop platform
41:08
consumer or criminal run or whatever or
41:10
the another alternative. If these apps
41:12
are not going to provide data to
41:14
law enforcement is more target is hacking
41:16
right? you know generally stuff like unopposed
41:18
Pegasus malware which goes on to your
41:20
phone's I think that broader society nice
41:22
have a conversation about those options because
41:24
the status quo is not an opposite
41:26
like that. we can't sell this assign
41:28
him way it was just no can
41:30
do anything because the F B I
41:32
and his partners are going to keep
41:34
doing things and is sort of up
41:36
to all of us and the tech
41:38
companies especially where that. Pressure and
41:40
assets is gonna be placed by this
41:43
be I potentially. We've
41:45
been in. A. Pretty novel period
41:47
where the tech companies has been very willing
41:49
to stand up to governments that does feel
41:51
like it's changing. Just in a
41:54
variety of ways. It's heels against
41:56
censoring distinct that stings like state
41:58
sponsor Takei or Pegasus by. There
42:00
any of other approaches it are getting
42:02
more and more novel. Getting.
42:04
The tech companies are going to allow them
42:07
to have any reason for going to try
42:09
to shut them down. As aggressive as they
42:11
have the past. but when we look at
42:13
not sat right and metre they are suing
42:15
center so groups because they didn't really like
42:18
the fact that and who for some people
42:20
know what's up but that say a sort
42:22
of process as a court case I'm as
42:24
it ebbs and flows rice and I think
42:26
it's race similar to the cat and mouse
42:28
game between law enforcement's the criminals they target
42:31
and sort of the vendors the provide sources.
42:33
clickability, the price of I phone. Exploits. I
42:35
don't have the latest but when I've
42:37
reported by talking to people who make
42:39
these exploits the government's is always going
42:41
up and then Apple makes and will
42:43
secure and then they find any work
42:46
round and he keeps going. keeps going,
42:48
keeps going. I personally the sir that
42:50
option where okay this be assembled Money
42:52
I can I don't know just signs
42:54
of money for something rather than compromising
42:56
entire chat tussle. The tech companies don't
42:58
like the side of his constant has
43:01
to six from abilities I'm as a
43:03
mess very annoying for them. Cspi. Don't
43:05
like the facts that's asking is not
43:07
sort of a turnkey solutions yes, annoying
43:09
for both parties is probably the best
43:11
solution right now. As messy as as
43:14
is. right? Because it protects the
43:16
hassle Consumers who are not doing anything
43:18
on what is the book is amazing
43:20
how they're from the it's It is
43:22
a fun read. Summer retreat A Crown
43:24
Books What's your favorite story in the
43:26
book? My favorite Stories: Absolutely the art
43:29
of a Criminal Court. Microsoft real name
43:31
Maximilian Risk it's I don't know my
43:33
skull Microsoft is had a friend in
43:35
prison to use the nickname Linux as
43:37
well. Listen, computer stuff going on there
43:39
are I would much rather be called
43:41
minute from Microsoft because he basically helps
43:43
expands these phones around. The world getting
43:46
all of his criminal network to use
43:48
them. He's planning his own crimes on
43:50
the platform as well. And then something
43:52
starts happening. His. Assets to
43:54
me laps guess raiders some of
43:56
his to came in ocean their
43:58
Hong Kong also. These ruins and
44:01
lots of things along the way
44:03
and he consistently blames other people
44:05
are other phones it is Nasa
44:07
the is a non phones and
44:09
is just this incredible artists this
44:11
criminal gangs his comeuppance which when
44:13
I came across that in these.
44:16
Masks of documents I've read in. the
44:18
people I've spoken to him know Microsoft,
44:20
the the are like fall into my
44:22
lap. I just could not as been
44:25
more lucky or happy This this this
44:27
person expresses. this is a bookmark writer
44:29
that's amazing again a character in the
44:31
book. Enough it's Dark Wire the incredible
44:33
true story of the largest thing operation
44:35
ever. Also cannot recommend for for media
44:37
enough to reach as work farid the
44:39
whole site is great really ring for
44:42
gastro thank you so much nicer thank
44:44
you so much. Really pisses. Thanks.
44:49
Again to just concentrate on the show his
44:51
book is Dark Wire the incredible true story
44:53
of the largest sting operation comes out on
44:55
June fourth by and were revivals you're into
44:57
decoder or the verbs this is your some
44:59
of these just pick up your thoughts or
45:02
this episode or what you like to hear
45:04
more of you can see mouse as he
45:06
twitter of overstock com we really do real
45:08
the in spree canadian directly on for on
45:10
that reckless troubling we also have such as
45:12
far as officers to fact check out it's
45:14
at each other part it's a lot sure
45:16
to sort of we share with your friends
45:18
subscriber your part us. Through that
45:20
process and is professor The Speakers
45:22
Oppression The Verge Pretty awesome. Deposit
45:24
network as episode is for news
45:26
because it's that is edited like
45:28
supervising producer to leave James Economies
45:30
and Christmas.
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