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[ISN] Chinese Spying Claimed in Purchases of NSA Crypto Gear

From: InfoSec News (alertsinfosecnews.org)
Date: Fri Jul 10 2009 - 03:50:37 CDT


http://www.wired.com/threatlevel/2009/07/export/

By Kevin Poulsen
Threat Level
Wired.com
July 9, 2009

A Chinese national was indicted this week for conspiring to violate U.S.
export law, following a nearly three-year investigation into his alleged
efforts to acquire sensitive military and NSA-encryption gear from eBay
and other internet sources.

Chi Tong Kuok, of Macau, told Defense Department and Customs
investigators that he had been “acting at the direction of officials for
the People’s Republic of China,” according to a government affidavit in
the case. “Kuak indicated he and PRC officials sought the items to
figure out ways to listen to or monitor U.S. government and military
communications.”

Kuok was arrested at the Atlanta International Airport last month en
route from Paris to Panama, where he allegedly planned to meet an
undercover federal agent he believed was going to provide him with
military radios. He was transferred to California, where he was indicted
(.pdf) Tuesday for money laundering, conspiracy, smuggling and one count
of attempting to export a defense article without a license.

The U.S. began investigating Kuok in December 2006, when, using the
first of many aliases, the man allegedly e-mailed a contact in the
defense industry in search of software for a VDC-300 airborne data
controller, used for secure satellite communications from American
military aircraft.

The contact referred Kuok to an undercover agent in San Diego, who began
negotiating with Kuok over a shopping list of military technology that
eventually grew to at least 43 different items, ranging from a GPS
receiver with anti-spoofing defenses, to the NSA-developed AN/CYZ-10
crypto key management device.

[...]

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