MarketEncroChat
Company Profile

EncroChat

EncroChat was a Europe-based communications network and service provider that offered modified smartphones allowing encrypted communication among subscribers. It was used primarily by organised crime members to plan criminal activities.

Background
EncroChat handsets emerged in 2016 as a replacement for a previously disabled end-to-end encrypted service. The company had revealed on 31 December 2015 the Version 115 of EncroChat OS, which appears to be the first public release of its operating system. According to a May 2019 report by the Gloucester Citizen, EncroChat was originally developed for "celebrities who feared their phone conversations were being hacked". In the 2015 murder of English mobster Paul Massey, the killers used a similar service providing encrypted BlackBerry phones based on PGP. After the Dutch and Canadian police compromised its server in 2016, EncroChat turned into a popular alternative among criminals for its security-oriented services in 2017–2018. The founders and owners of EncroChat are not known. According to Dutch journalist Jan Meeus, a Dutch organised crime gang was involved and financed the developers. Through a marketing strategy of "relentless online advertising", EncroChat rapidly expanded during its four and a half years of existence, benefiting from the closure of its competitors Amsterdam-based PGP Safe (customised BlackBerry) and Ennetcom. The network eventually reached an estimated 60,000 total subscribers at the time of its closure in June 2020. The service resurfaced in the media during the summer of 2020 after law enforcement agencies announced that they had infiltrated the encrypted network and investigative journalist Joseph Cox, who had been reviewing EncroChat for months, published an exposé in Vice Motherboard. == Functionality and services ==
Functionality and services
The EncroChat service was available for handsets called "carbon units", whose GPS, camera and microphone functions were disabled by the company for privacy reasons. They generally used modified Android devices, with some models based on the BQ Aquaris X2 phone hardware, According to journalist Jurre van Bergen, the IP of EncroChat's server was associated with the French web hosting company OVH. EncroChat's website says that the firm had resellers in Amsterdam, Rotterdam, Madrid and Dubai, although Cox describes EncroChat as a "highly secretive" firm which "does not operate like a normal technology company". ==Infiltration==
Infiltration
The EncroChat encrypted messaging service and the related customised phones were discovered by France's National Gendarmerie in 2017 when conducting operations against organised crime gangs. At the time of the Fellows and Boyle trial in December 2018, the NCA struggled to crack the lock screen passcode, as anything was wiped out after a set number of attempts. Intelligence and technical collaboration between the NCA, the National Gendarmerie and Dutch police culminated in gaining access to messages after the National Gendarmerie put a "technical tool" on EncroChat's servers in France. The malware allowed them to read messages before they were sent and record lock screen passwords. Messages could be read by law enforcement beginning in April. Europol and the National Crime Agency refused to comment at the time. == Impact ==
Impact
European joint investigation team, 2020 The Europol-supported JIT, code named Emma 95 in France and 26Lemont in the Netherlands, allowed the gathering in real time of millions of messages between suspects. Information was also shared with law enforcement in several countries that were not participating in the JIT, including the UK, Sweden and Norway. The Dutch police arrested more than 100 suspects and seized more than 8 tonnes of cocaine, around 1.2 tonnes of crystal methamphetamine, 19 synthetic drug laboratories, dozens of guns and luxury cars, and around €20 million in cash. EncroChat probes in Ireland left criminals scrambling for cover. €1.1 million worth of cocaine was seized in an Amsterdam flat, and €5.5 million of cannabis in a trailer in County Wexford, both belonging to Irish gangs. Prominent Irish gang boss Daniel Kinahan was reported to have fled his "safe-haven" of Dubai on 9 July 2020. Arrests were also made in Sweden. United Kingdom Operation Venetic Operation Venetic was a British national response initiated by the National Crime Agency (NCA). In June 2020, EncroChat had 10,000 users in the UK alone. More than 28 million tablets of the sedative Etizolam were found in a factory in Rochester, Kent. He had pleaded guilty to four counts of conspiracy to commit a crime at an earlier hearing. • By 9 October 2023, Operation Venetic had led to more than 3,100 arrests, 1,240 convictions and a combined 7,938 years in prison sentences. The operation had also recovered 173 firearms, 3459 rounds of ammunition and more than 9 tonnes of class A drugs. • In November 2023 Natalie Mottram, a former police analyst, was sentenced to almost four years imprisonment for misconduct in public office, perverting the course of justice and unauthorised access to computer material. She had told a criminal friend that police were monitoring EncroChat messages and that the police had information on him. Warrant legality The legality of the Targeted Equipment Interference (TEI) warrant (91-TEI-0141-2020) due to the unorthodox nature of the warrant as well as the legal arguments in the affidavit in application of a TEI warrant. There is nothing new in arguing the merits of obtaining the identities of the users of a system and bringing them to justice. Neither is it particularly unusual to exaggerate the number of criminals that will be arrested, or to downplay the number of innocent people that will be affected by the intrusion, however unethical that method may be. However, in this warrant the NCA essentially indicated that if the warrant wasn't granted, then the French would proceed with the operation anyway, and the NCA would be exposed as culpable as to having violated civil and criminal statutes in the United Kingdom. (see page 9) "...there is a significant risk that the NCA is encouraging an offense under the CMA, which may amount to an offence under ss. 44, 45, 46 of the Serious Crime Act 2007 (the "SCA 2007)"..." In other words, the NCA's arguments for obtaining the warrant was, "if you don't grant this, we could be prosecuted for criminally participating in the hacking of United Kingdom citizens devices." After granting the initial warrant, amendments to the initial warrant were requested on 24 March 2020 to allow for the scanning of wireless access points available to the Encrochat devices. The Investigatory Powers Tribunal (IPT) concluded that the National Crime Agency (NCA) did not deliberately conceal information from the Judicial Commissioner when applying for the Targeted Equipment Interference (TEI) warrant. The tribunal found that the NCA's actions were lawful and that they were not wrong in seeking a TEI warrant instead of a Targeted Interception (TI) warrant. The tribunal dismissed various claims and complaints, declaring that the TEI warrant was lawfully issued and that the NCA did not fail in its duty of candor. Operation Eternal Operation Eternal, the London Metropolitan Police arm of the EncroChat operation, described itself as "the most significant operation the Metropolitan Police Service has ever launched against serious and organised crime". Around 1,400 EncroChat users were based in London at the time of its closure in June 2020. The Metropolitan Police seized more than £13.4 million in cash, 16 firearms, more than 500 rounds of ammunition, 620 kg (1400 lb) of Class A drugs, and arrested 171 people. As of 8 July 2020, 113 of them have been charged; 88 face charges of conspiracy to supply Class A drugs, and 16 have been charged with firearms offences. Three men were arrested in Brighton and Portslade, five men and a woman in Kent and London. ==Convictions==
Convictions
On 21 May 2021, Carl Stewart of Gem Street, Liverpool was sentenced to 13 years and 6 months at Liverpool Crown Court after pleading guilty to attempting to smuggle cocaine, heroin, MDMA and ketamine, as well as transferring criminal property. He had used EncroChat to transfer large amounts of class A and B drugs under the alias "ToffeeForce" In July 2024, former Gibraltar international footballer Jason Pusey was sentenced to 11 years in prison for his involvement in a large-scale drug operation, coordinating the supply of significant quantities of cocaine, ketamine, and cannabis. == Similar products ==
Similar products
• The Canada-based company Phantom Secure, which started as a legitimate firm selling modified mobile phones, Its CEO, Vincent Ramos, was sentenced in 2019 to a nine-year prison sentence after telling undercover agents that he created the device to help drug traffickers. Customers included members of the Sinaloa Cartel, and the FBI reportedly asked Ramos to plant a backdoor in Phantom Secure's encrypted network, which he refused to do. • The "secure messenger" ANOM was launched after Phantom Secure was shut down, but in 2021 was revealed to be a sting operation run by law enforcement agencies. The shutdown of EncroChat helped give rise to ANOM. • The secure mobile phone company MPC was revealed in 2019 to have been created by Scottish criminals James and Barrie Gillespie. Christopher Hughes, a former employee of the company, is wanted by Dutch police for the murder of criminal turned blogger Martin Kok in December 2016. • Sky ECC was an encrypted chat service by Sky Global, a Canadian service provider. In March 2021, Dutch and Belgian police claimed to have accessed and decrypted the system traffic, leading to numerous arrests. • Ennetcom was a Dutch telecom provider accused of having retailed its customised phones for €1,500 each largely for use by criminals, with traffic of the company's servers (mostly Canada-based) used for routing encrypted messages between its about 19,000 subscribers. • Ghost was an Australian provider that was raided in 2024. • Exclu was a network that was shut down after international raids in February 2023. ==References==
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