The NSA Worked To ‘Track Down’ Bitcoin Users, Snowden Documents Reveal

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BY: Sam Biddle 03.21.18

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Internet paranoiacs drawn to Bitcoin have long indulged fantasies of American spies subverting the booming, controversial digital currency. Increasingly popular among get-rich-quick speculators, Bitcoin started out as a high-minded project to make financial transactions public and mathematically verifiable — while also offering discretion. Governments, with a vested interest in controlling how money moves, would, some of Bitcoin’s fierce advocates believed, naturally try and thwart the coming techno-libertarian financial order.

It turns out the conspiracy theorists were on to something. Classified documents provided by the whistleblower Edward Snowden show the National Security Agency indeed worked urgently to target Bitcoin users around the world — and wielded at least one mysterious source of information to “help track down senders and receivers of Bitcoins,” according to a top-secret passage in an internal NSA report dating to March 2013. The data source appears to have leveraged NSA’s ability to harvest and analyze raw, global internet traffic while also exploiting an unnamed software program that purported to offer anonymity to users, according to other documents.

Although the agency was interested in surveilling some competing cryptocurrencies, “Bitcoin is #1 priority,” a March 15, 2013 internal NSA report stated.

The documents indicate that “tracking down” Bitcoin users went well beyond closely examining Bitcoin’s public transaction ledger, known as the Blockchain, where users are typically referred to through anonymous identifiers; the tracking may also have involved gathering intimate details of these users’ computers. The NSA collected some Bitcoin users’ password information, internet activity, and a type of unique device identification number known as a MAC address, a March 29, 2013 NSA memo suggested. In the same document, analysts also discussed tracking internet users’ internet addresses, network ports, and timestamps to identify “BITCOIN Targets.”

The agency appears to have wanted even more data: The March 29 memo raised the question of whether the data source validated its users, and suggested that the agency retained Bitcoin information in a file named “Provider user full.csv.” It also suggested powerful search capabilities against Bitcoin targets, hinting that NSA may have been using its XKeyScore searching system, where the Bitcoin information and wide range of other NSA data was cataloged, to enhance its information on Bitcoin users. An NSA reference document indicated that the data source provided “user data such as billing information and Internet Protocol addresses.” With this sort of information in hand, putting a name to a given Bitcoin user would be easy.

The NSA’s budding Bitcoin spy operation looks to have been enabled by its unparalleled ability to siphon traffic from the physical cable connections that form the internet and ferry its traffic around the planet. As of 2013, the NSA’s Bitcoin tracking was achieved through program codenamed OAKSTAR, a collection of covert corporate partnerships enabling the agency to monitor communications, including by harvesting internet data as it traveled along fiber optic cables that undergird the internet.

Specifically, the NSA targeted Bitcoin through MONKEYROCKET, a sub-program of OAKSTAR, which tapped network equipment to gather data from the Middle East, Europe, South America, and Asia, according to classified descriptions. As of spring 2013, MONKEYROCKET was “the sole source of SIGDEV for the BITCOIN Targets,” the March 29, 2013 NSA report stated, using the term for signals intelligence development, “SIGDEV,” to indicate the agency had no other way to surveil Bitcoin users. The data obtained through MONKEYROCKET is described in the documents as “full take” surveillance, meaning the entirety of data passing through a network was examined and at least some entire data sessions were stored for later analysis.