How America's FBI Sabotaged Tech-Stealing Spies from the USSR

FBI agent Rick Smith remembered seeing that Austrian-born Silicon Valley entrepreneur one year earlier - walking into San Francisco's Soviet Consulate in the early 1980s. Their chance reunion at a bar "would sow the seeds for a major counterintelligence campaign," writes a national security journalist in Politico, describing the collaboration as "an FBI-led operation that sold the Soviet Bloc millions in secretly sabotaged U.S. hi-tech." The Austrian was already selling American tech goods to European countries, and "By the early 1980s, the FBI knew the Soviet Union was desperate for cutting-edge American technology, like the U.S.-produced microchips then revolutionizing a vast array of digital devices, including military systems..."Moscow's spies worked assiduously to steal such dual use tech or purchase it covertly. The Soviet Union's ballistic missile programs, air defense systems, electronic spying platforms, and even space shuttles, depended on it.... But such tech-focused sanctions-evasion schemes by America's foes offer opportunities for U.S. intelligence, too - including the opportunity to launch ultra-secret sabotage campaigns to alter sensitive technologies before they reach their final destination... Working under the FBI's direction, the Austrian agreed to pose as a crook, a man willing to sell prohibited technology to the communist Eastern Bloc... [T]he FBI and the Austrian would seed faulty tech to Moscow and its allies; drain the Soviet Bloc's coffers; expose its intelligence officers and secret American conspirators; and reveal to American counterspies exactly what tech the Soviets were after... [T]he Soviet Bloc would unknowingly purchase millions of dollars' worth of sabotaged U.S. goods. Communist spies, ignorant that they were being played, would be feted with a literal parade in a Warsaw Pact capital for their success in purchasing this forbidden technology from the West... The Austrian's connections now presented a major opportunity. The Bulgarians, and their East German and Russia allies, were going to get that forbidden tech. But not before the FBI tampered with it first... Some of the tech was subtly altered before the Bulgarians could get their hands on it. Some was rendered completely unusable. Some of it was shipped unadulterated to keep the operation humming - and allay any suspicions from the Eastern Bloc about what might be going on. And some of it never made its way to the Bulgarians at all. In one case, the bureau intercepted a $400,000 order of computer hardware from the San Jose-based firm Proquip and shipped out 6,000 pounds of sandbags instead.... Some suffered what appeared to be "accidental" wear-and-tear during the long journey to the Eastern Bloc, recalled Ed Appel [a former senior FBI official]. Other times, the FBI would tamper with the electronics so they would experience "chance" voltage overloads once Soviet Bloc operatives plugged them in. The sabotage could also be more subtle, designed to degrade machine parts or microchips over time, or to render hi-tech tools that required intense precision slightly, if imperceptibly, inaccurate. The article concludes that "While the Soviet Union might have imploded over three decades ago... Russia's intelligence services are still scouring the globe for prohibited U.S. tech, particularly since Moscow's February 2022 invasion of Ukraine... "Russia has reportedly even covertly imported household items like refrigerators and washing machines to rip out the microchips within them for use in military equipment."

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