Episode #40 - ANOM for Me But Not For Thee

Simon · November 30, 2024, 7:02pm

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The Story of Operation Trojan Shield: Inside the FBI’s Secret Encrypted Phone Sting

It all began with a man named Domenico Gattanzariti, a South Australian drug trafficker. He started small, dealing in methamphetamine, but soon moved into the big leagues: cocaine. Domenico wasn’t just trafficking drugs—he was selling something equally valuable to criminals: encrypted phones. He worked with Phantom Secure, a company that modified BlackBerry devices, stripping them of cameras, GPS, and microphones, and layering them with encryption. These phones became essential tools for organized crime, enabling drug deals, money laundering, and even murder to be coordinated in private.

But in 2018, Phantom Secure came crashing down. The FBI dismantled the company, arresting its leaders and leaving a gaping hole in the market for encrypted phones. Criminals were left scrambling, searching for alternatives to communicate securely. And in that chaos, a man known only as Afgoo stepped forward with an offer that would change the game forever.

Anom Is Born

Afgoo, a seasoned figure in the world of encrypted phones, approached the FBI with a proposition. He was building a new phone company called Anom, and he was willing to hand it over—entirely—to the FBI. Why? To save his own skin. Facing criminal charges, he offered his creation in exchange for leniency and $120,000. The FBI accepted, and with that, the agency secretly became the owner of a criminal phone empire.

Anom wasn’t just another encrypted phone. It was a Trojan horse. While it boasted features that appealed to criminals—like decoy apps, PIN scrambling, and even a “wipe code” to erase data during an arrest—it was built with a fatal flaw. Every single message sent on an Anom device was copied to a secret FBI server. And the criminals buying these phones had no idea.

The Sting Begins

By 2019, Anom phones were on the market. They looked legitimate, even slick. Built on modified Google Pixel devices, they ran a custom operating system called Arcane OS, and their encrypted chat app was hidden behind a calculator interface. To access it, users had to enter a specific code into the calculator. For $1,000 to $2,000 every six months, criminals could get what they thought was the ultimate secure device.

Behind the scenes, it was anything but secure. The FBI had built a system that turned every private conversation into a group chat, silently adding their own “ghost contact” to every message. No matter how careful criminals were, their plans, locations, and deals were being read in real time by agents in San Diego.

A Global Web of Deception

The operation wasn’t just clever—it was global. To avoid legal restrictions in the U.S., the FBI partnered with Lithuania, which agreed to collect all Anom messages and send them to the FBI twice a week. On Mondays and Wednesdays, massive dumps of criminal communications—text messages, photos, voice memos—were encrypted and shipped off to FBI servers.

And what a treasure trove it was. Photos of cocaine bricks, videos of smuggling routes, detailed plans for assassinations—all of it poured into FBI offices. One message revealed a plot to kidnap someone in the Netherlands. Another described a speedboat operation in Sweden, where traffickers intercepted cocaine thrown from passing freighters. By 2021, Anom devices were being used in over 100 countries, and the FBI had amassed an intelligence haul unlike anything they’d ever seen.

The Sky Falls

Then came the turning point. Another encrypted phone company, Sky ECC, was dismantled by European authorities in 2021. Sky had been the market leader, with tens of thousands of phones in use. Its downfall left a massive gap, and Anom was ready to fill it. The FBI capitalized on the opportunity, flooding the market with Anom devices. Demand was so high that the FBI had to fly refurbished phones to Europe on private jets just to keep up.

As Anom grew, so did its problems. Distributors like Hakan Ayik, a major Australian drug trafficker, began to suspect something was off. Yet he and others brushed aside their doubts, eager to cash in on the booming phone sales. Even when shipments were seized, traffickers blamed internal leaks or rival gangs, never imagining that their trusted phones were the source.

The Curtain Falls

In June 2021, the FBI pulled back the curtain. They announced to the world that Anom had been their operation all along. Hundreds of arrests followed, along with the seizure of over 32 tons of drugs, $48 million in cash, and countless weapons. Criminal networks were thrown into chaos, and the trust they’d placed in encrypted phones was shattered.

But the story doesn’t end there. While the FBI celebrated, questions about ethics and privacy emerged. Anom hadn’t just captured criminals—it had swept up innocent people, too. Lawyers, for example, were caught in the dragnet simply for providing legal advice to their clients. The FBI’s actions raised a chilling question: If they could do this once, what’s stopping them from doing it again?

A New Era of Surveillance

Joseph Cox, the journalist who uncovered much of this story, believes the FBI isn’t done. In fact, during a private law enforcement conference, an FBI agent openly stated that they looked forward to the “next iteration” of Operation Trojan Shield. But as criminals move away from specialized phones to consumer apps like Signal or WhatsApp, the lines between targeting criminals and surveilling the public become increasingly blurred.

This is the legacy of Anom: a world where the boundaries of surveillance, legality, and privacy are constantly shifting. And while the FBI may see it as a triumph, others see it as a warning—a glimpse into a future where no device, no conversation, is truly secure.

This is the story of how the FBI infiltrated the underworld, one encrypted phone at a time. The question now is: What comes next?

Closing Thoughts

Joseph Cox concluded by urging a broader conversation on the ethics of backdoors and surveillance. He highlighted the need for a sustainable approach to the “going dark” debate, balancing security and privacy in an increasingly digital world.

DEFCON presentation by Joseph Cox - 404 Media - DEF CON 32 - Inside the FBI’s Secret Encrypted Phone Company ‘Anom’ - Joseph Cox - https://www.youtube.com/watch?v=uFyk5UOyNqI

Timeline of Operation Trojan Shield

2018: Shutdown of Phantom Secure
- Phantom Secure, a popular encrypted phone provider for criminals, was dismantled by the FBI.
- Informant “Afgoo” approached the FBI, offering his new encrypted phone company, Anom, in exchange for leniency on his charges and financial compensation.
2019: Launch of Anom
- Anom phones, using a custom operating system (Arcane OS) and hidden messaging app, were sold globally to criminal networks.
- The FBI embedded a backdoor into the phones, copying all communications to their servers.
2019–2020: Surveillance Expansion
- Anom users were monitored worldwide, with critical data routed through a third-party country, Lithuania, to circumvent U.S. legal restrictions.
- The FBI provided intelligence to Europol and other international agencies, preventing crimes such as kidnappings and drug trafficking.
2021: Sky ECC Shutdown
- After another encrypted phone provider, Sky ECC, was dismantled, demand for Anom phones surged.
- The FBI ramped up operations, secretly replenishing Anom’s inventory with refurbished Google Pixel devices delivered via covert means.
2021: Public Revelation
- In June, the FBI revealed it had been running Anom, leading to hundreds of arrests and seizures worldwide.
- Criminal networks were destabilized, and trust in encrypted communication platforms eroded.
Aftermath and Debate
- The operation sparked global debate on the ethics of law enforcement creating and operating surveillance platforms.
- Some encrypted phone companies shut down, while others adapted by using open-source operating systems like GrapheneOS combined with consumer apps like Signal.

Key Points from the Talk

Technical Details
- Anom phones included security features like decoy apps and PIN scrambling to avoid detection by law enforcement.
- The FBI’s backdoor transformed every private chat into a group chat, with the FBI silently monitoring all communications.
- Metadata and GPS data were also collected, enabling detailed mapping of criminal networks.
Global Scale
- Anom operated in over 100 countries, with distributors and resellers unknowingly aiding the FBI.
- The infrastructure spanned multiple jurisdictions, with Lithuania handling data collection and the U.S. managing analysis.
Ethical Concerns
- Collateral surveillance affected individuals not involved in crimes, including lawyers providing legal counsel.
- The operation raised questions about privacy rights, legal boundaries, and potential abuse of power.
Future Implications
- The FBI has expressed interest in repeating similar operations, citing Trojan Shield as a success.
- Cox emphasized the risks of using consumer apps like Signal for law enforcement operations, which could impact journalists, activists, and ordinary users.

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Credit: AVA - ava: "The Wolfsberg Group, an association of 12 global ...

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“The Wolfsberg Group, an association of 12 global banks that aims to develop frameworks and guidance for the management of financial crime risks, has released Frequently Asked Questions (FAQs) on Digital Assets.”

It is an ominous foreshadowing of the kind of transactional surveillance that is to come:

Device IDs
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Not to mention the impending AI onchain-analysis of Bitcoin’s public blockchain.

You cannot have freedom without privacy.

Privacy is not a crime.

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