A U.S. nuclear engineer and his wife have been charged with attempting to sell restricted naval data to an undercover FBI agent in exchange for cryptocurrency. Here’s all you need to know about the case.
What are the details of the arrest?
According to a criminal complaint filed by the Federal Bureau of Investigation (FBI), Jonathan and Diana Toebbe are being charged with selling secret information relating to the design of the U.S. nuclear submarines to a foreign country.
The two were arrested on Saturday in West Virginia and charged with violating the Atomic Energy Act. They are scheduled to appear in a West Virginia federal court on Tuesday.
Jonathan Toebbe is an engineer assigned to the Naval Nuclear Propulsion Program. Because of his role, he held an active national security clearance through the U.S. Department of Defense, which gave him access to sensitive information.
According to a statement by the Justice Department, the pair violated the Atomic Energy Act, which prohibits the transmission, communication and disclosure of restricted nuclear data with the intent to injure the U.S. or to secure an advantage to any foreign nation.
The complaint further shows that Jonathan sent a package with restricted data to a foreign government in April 2020. He then began corresponding with an undercover FBI agent posing as a foreign official via email to sell secrets for tens of thousands of dollars in cryptocurrency. The couple attempted to sell this restricted dat on three occasions from June 8 to Oct. 9, 2021.
Without his knowledge, Jonathan met an undercover agent thrice and handed over the restricted documents and encrypted data on an SD card concealed in a peanut butter sandwich and a chewing gum packet while his wife acted as the lookout. The SD cards contained information related to submarine nuclear reactors.
The cryptocurrency involvement
Toebbe allegedly asked for $100,000 in cryptocurrency in exchange for the data, which he had already received.
The use of crypto as payment in such a case with national security implications could raise more scrutiny on the use of virtual currencies in facilitating illegal activities. This provides an incentive for regulators such as the SEC and members of congress who have been arguing for more crypto regulation.
As a high-profile case, it could lead to more regulation on digital currencies to reduce the occurrence of such incidences.
