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<ul class="summary-list"><li>The theft of highly classified cyberweapons from the <keyword id="44293" type="ORGANIZATION" weightage="60" keywordseo="CIA">CIA</keyword> in 2016 resulted from the agency's elite <keyword id="6357115" type="DEFINITION" weightage="60" keywordseo="Hacking">hacking</keyword> unit's failure to secure its own systems from intruders, according to an internal report obtained by The Washington Post.</li><li>The CIA discovered the breach when the radical pro-transparency group <keyword id="6409883" type="ORGANIZATION" weightage="60" keywordseo="wikileaks">WikiLeaks</keyword> published the information in a release dubbed "<keyword id="4333178" type="PERSON" weightage="60" keywordseo="Vault-7">Vault 7</keyword>." US officials say the breach was the largest unauthorized disclosure of classified information in CIA history.</li><li>Security protocol within the hacking unit that developed the cyberweapons, housed within the CIA's Center for Cyber Intelligence, was "woefully lax," the report found.</li><li>Moreover, the CIA may never have discovered the breach in the first place if WikiLeaks hadn't published the documents or if a hostile foreign power had gotten a hold of the information first, according to the report.</li></ul>The Central Intelligence Agency's elite hacking team "prioritized building cyber weapons at the expense of securing their own systems," according to an internal agency report prepared for then-CIA director Mike Pompeo and his deputy, Gina Haspel, who is now the agency's director.<a href="https://www.washingtonpost.com/national-security/elite-cia-unit-that-developed-hacking-tools-failed-to-secure-its-own-systems-allowing-massive-leak-an-internal-report-found/2020/06/15/502e3456-ae9d-11ea-8f56-63f38c990077_story.html" target="_blank" rel="noopener">The Washington Post first reported on the document</a>, which said the hacking unit's failure to secure the CIA's systems resulted in the theft of highly classified cyberweapons in 2016.In March 2017, US officials discovered the breach when the radical pro-transparency group WikiLeaks published troves of documents detailing the CIA's electronic surveillance and <keyword id="147681" type="PERSON" weightage="60" keywordseo="Cyberwarfare">cyberwarfare</keyword> capabilities. WikiLeaks dubbed the series of documents "Vault 7," and officials say it was the biggest unauthorized disclosure of classified information in the agency's history.The internal report was introduced in criminal proceedings against former CIA employee <keyword id="6633218" type="UNKNOWN" weightage="60" keywordseo="Joshua-Schulte">Joshua Schulte</keyword>, who was charged with swiping the hacking tools and handing them over to WikiLeaks.The government brought in witnesses who prosecutors said showed, through forensic analysis, that Schulte's work computer accessed an old file that matched some of the documents WikiLeaks posted. Schulte's lawyers, meanwhile, pointed to the internal report as proof that the CIA's internal network was so insecure that any employee or contractor could have accessed the information Schulte is accused of stealing.A New York jury <a href="https://www.nytimes.com/2020/03/09/nyregion/cia-wikileaks-joshua-schulte-verdict.html" target="_blank" rel="noopener">failed to reach a verdict in the case in March</a> after the jurors told Judge Paul Crotty that they were "extremely deadlocked" on many of the most serious charges, though he was convicted on two counts of contempt of court and making false statements to the FBI.Crotty subsequently declared a mistrial, and prosecutors said they intended to try Schulte again later this year.The report was compiled in October 2017 by the CIA's WikiLeaks Task Force, and it found that security protocol within the hacking unit that developed the cyberweapons, housed within the CIA's Center for Cyber Intelligence, was "woefully lax," according to the Post.The outlet reported that the CIA may never have discovered the breach in the first place if WikiLeaks hadn't published the documents or if a hostile foreign power had gotten a hold of the information first."Had the data been stolen for the benefit of a state adversary and not published, we might still be unaware of the loss," the internal report said.It also faulted the CIA for moving "too slowly" to implement safety measures "that we knew were necessary given successive breaches to other U.S. Government agencies." Moreover, most of the CIA's sensitive cyberweapons "were not compartmented, users shared systems administrator-level passwords, there were no effective removable media [thumb drive] controls, and historical data was available to users indefinitely," the report said.The Center for Cyber Intelligence also did not monitor who used its network, so the task force could not determine the size of the breach. However, it determined that the employee who accessed the intelligence stole about 2.2 billion pages — or 34 terabytes — of information, the Post reported.

The CIA's massive 'Vault 7' leak resulted from 'woefully lax' security protocols within the agency's own network, an internal report found

<ul class="summary-list"><li>The man convicted of the biggest leak in CIA history faces a separate federal trial in September.</li><li>Joshua Schulte is facing child pornography charges, a case where he is representing himself.</li></ul>The man convicted of leaking CIA documents to WikiLeaks is sparring with the federal government over whether he has enough typewriter ribbon to put together his own defense arguments for a child pornography trial.According to <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.480183/gov.uscourts.nysd.480183.1055.0.pdf?utm_source=substack&amp;utm_medium=email">court documents</a> first shared by <a href="https://www.courtwatch.news">CourtWatch</a>, ex-CIA staffer and convicted leaker Joshua Schulte is set to stand trial in a separate child pornography case in September.In court filings, Schulte — who will represent himself as he did in previous cases — has argued that he doesn't have enough typewriter ribbon to write his own defense, which the federal government isn't buying.In a letter written by federal prosecutors to a judge overseeing Schulte's case, they argued that Schulte had misrepresented the supplies he has at his disposal at the Metropolitan Detention Center in New York."The letters repeat allegations and complaints that Defendant has made repeatedly in other submissions and in conferences with the Court, including: that he lacks access to paper, pens, typewriter ribbons, and stamps," prosecutors said. They added that in early June, he was supplied two reams of typing paper for his typewriter."Mr. Schulte should receive the additional stamps and typewriter ribbon early next week," prosecutors said.In July 2022, Schulte, a former CIA software engineer, was convicted of nine counts by a federal jury, including violating the Espionage Act. The charges related to his 2017 leak of CIA secrets around the US government's hacking and spying on foreign governments and terrorist groups to Wikileaks, <a href="https://www.nytimes.com/2022/07/13/nyregion/cia-engineer-joshua-schulte-theft-convicted.html" target="_blank" rel="noopener">according to The New York Times.</a>The re-trial came after Schulte was initially found guilty on two of ten counts in an earlier trial, with jurors hung on eight counts. In 2017, after receiving Schulte's dispatch, Wikileaks published the information, titled "Vault 7," <a href="https://lawandcrime.com/high-profile/WikiLeaks-cia-leaker-had-2400-likely-child-sex-abuse-files-on-his-jailhouse-laptop-feds-say/" target="_blank" rel="noopener">per Law and Crime.</a>Federal prosecutors alleged that as Schulte represented himself in those cases, he stored up to 2,400 images of "likely" child pornography on the laptop he used while detained, Law and Crime reported. In the latest court filing, prosecutors said his requests for more materials threaten to delay his new September trial. At the time of his last trial, former high school classmates of Schulte <a href="https://www.businessinsider.com/former-cia-hacker-kept-showing-his-penis-and-drawing-swastikas-2022-6">described him</a> drawing swastikas and flashing his genitals to others regularly.

The man convicted of the biggest CIA leak in history says he doesn't have enough typewriter ribbon to craft his own defense for a separate child pornography trial

<ul class="summary-list"><li>Former <keyword id="11937984" type="UNKNOWN" weightage="60" keywordseo="cia" source="Orion">CIA</keyword> agent Joshua Schulte is accused of the largest <keyword id="12259052" type="UNKNOWN" weightage="60" keywordseo="leak" source="Orion">leak</keyword> in the agency's history.</li><li>Writer Patrick Radden Keefe spoke to some of Schulte's high school friends for The New Yorker.</li></ul>The former CIA agent accused of the largest leak in the agency's history drew swastikas and showed his genitals to other students at high school, according to a profile published by The New Yorker.Joshua Schulte became so known for his temper at the CIA that he was nicknamed the Nuclear Option, <a href="https://www.newyorker.com/magazine/2022/06/13/the-surreal-case-of-a-cia-hackers-revenge">Patrick Radden Keefe</a> wrote.One of his school friends, Kavi Patel, said the former CIA agent used to "draw swastikas all over the place," but claimed he was not anti-Semitic.Patel said Schulte liked getting a rise out of people and recalled him saying: "I don't really care one way or the other, but it's fun to see the shock on people's faces." On at least one occasion, according to the article, he drew swastikas on the yearbook of a Jewish student. When Schulte was in college, he argued on his blog that pornography is a form of free expression that "is not degrading to women" and "does not incite violence," Keefe wrote for The New Yorker. One woman interviewed for the article said Schulte had repeatedly exposed his genitals to other students in the junior high school band. "He would try and touch people, or get people to touch him—that was a daily occurrence," she said.In March 2017, WikiLeaks published a series of articles disclosing <keyword id="14178362" type="UNKNOWN" weightage="60" keywordseo="confidential" source="Orion">confidential</keyword> information from the CIA taken from 2 billion pages of documents stolen from the agency. In his article, Keele quotes a WikiLeaks statement suggesting that the person who leaked the information wanted "to initiate a public debate" about the use of cyberweapons. Investigators suspected Schulte, obtained a warrant and searched his flat. According to the article, the FBI seized his computers for forensic analysis and discovered a "virtual machine" – an entire operating system nested within the computer's normal operating system.The investigators discovered a large amount of <keyword id="11911083" type="UNKNOWN" weightage="60" keywordseo="child-pornography" source="Orion">child pornography</keyword>, and his internet research history showed his interest in WikiLeaks. Schulte will be representing himself in the trial scheduled to begin in New York on Monday.Keefe said: "Schulte no longer works for the government, but his head is still full of government secrets, and he will be the one questioning witnesses on the stand."

Former CIA agent facing trial for the agency's largest leak drew swastikas on students' books at high school, report says

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Andrew Burton/Getty Images</div></div></div>The energy sector has been getting hammered, and that has Wall Street on high alert.The commodity slump has put a number of companies under pressure. Oil and gas companies <a href="http://www.businessinsider.com/banks-oil-and-gas-classified-loans-2015-11">are edging toward default</a>, and big banks are <a href="http://www.businessinsider.com/banks-oil-and-gas-classified-loans-2015-11">pulling back from lending to the industry</a>. Restructuring lawyers, activist investors and distressed debt specialists are all gearing up for a flood of new business."We're seeing more restructuring, already," Michael Sage, co-chair of Dechert LLP's business restructuring and reorganization practice, told Business Insider. "If you had to pick the biggest factor, it would be the price of oil." <h2 class="p1">Lucrative business</h2>Providing restructuring is big business on Wall Street. Companies often work to restructure their debts, agreeing to new terms with their creditors in the same way a consumer might if they have fallen on hard times.Then there are debt-for-equity swaps, where creditors agree to a reduction in the money owed to them in exchange for a chunk of the company. Some companies split off divisions too, or sell assets to pay back creditors. <div class="KonaFilter image-container display-table"><div><div class="image on-image">Thomson ReutersFederal Reserve Board Chair Yellen testifies before House Financial Services Committee in Washington</div></div></div>Many advisory and law firms that specialize in restructuring work hired staff in expectation of a wave of activity in the aftermath of the financial crisis, but with interest rates at record lows, there has been less activity than many had expected. <a href="http://www.businessinsider.com/deutsche-bank-a-wave-of-defaults-may-be-just-around-the-corner-2015-10">That looks ready to change. </a>"It's likely going to be a steady stream of bankruptcies" in 2016 and beyond, Kirkland &amp; Ellis restructuring partner Joshua Sussberg told Business Insider. It's not just because of the decline in commodity prices either. Some energy exploration companies in the sector have been protected from the oil price decline due to hedges on the oil price, according to Sussberg. Many of those bets will expire in 2016, he said.Then there is the prospect of the Federal Reserve raising interest rates, which could put further pressure on energy companies. "A lot of companies in that space are already distressed," Ele Klein, partner with Schulte Roth &amp; Zabel, told Business Insider. "There's no easy fix for that." Restructuring can include<h2 class="p1">Investor interest</h2>Investors are circling the industry, trying to figure out how they might make money."A lot of that capital is now on the sidelines," Sussberg told Business Insider. "It's a lot of wait-and-see." Activist investors look ready to move in. For example, 52% of <a href="http://www.businessinsider.com/energy-companies-have-a-new-big-problem-2015-11">respondents to a recent activist investor survey</a> said the energy sector is filled with "significant" opportunities, more than any other industry. "Energy activism was at a low in 2015 as commodity price issues negatively impacted the industry. It appears that activists are ready and waiting for signs of growth in this sector before beginning to engage," the report said.Then there are companies that will be forced into bankruptcy.<h2 class="p1">Distress</h2>Wherever there is distress, there are likely to be private equity buyers and distressed debt investors. Distressed debt investors have struggled for returns post-financial crisis, as an extended period of low interest rates has limited the number of companies that have fallen into difficulty. With interest rates set to rise in the near future and bond markets showing signs of stress, some are betting that more companies will find themselves under pressure. <div class="KonaFilter image-container display-table float_right center"><div><div class="image on-image">Federal Reserve dataThe Federal Reserve tracks non-financial corporate debt, which has risen substantially in the years following the financial crisis.</div></div></div>Jay Wintrob, the chief executive of alternatives investor Oaktree Capital, said at the Bank of America 2015 Banking and Financial Services conference in New York that there had been "spectacular" growth in the amount of debt outstanding since the financial crisis. "If and when we see a different part of the credit cycle, my guess is the amount of paper that will be trading at distressed levels will be far higher than the last time at this point in the cycle.""It may not be the fall of 2008, the beginning of 2009, it probably won't be, but that doesn't mean that there isn't going to be a lot of really positive investment opportunities out there." <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/robert-herjavec-american-dream-shark-tank-small-business-2015-10">'Shark Tank' star Robert Herjavec says only Americans think there are no opportunities in America </a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="gwbTkzeDpwglUYEFdCPlUIg1JNcvtfkf" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

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The CIA's massive 'Vault 7' leak resulted from 'woefully lax' security protocols within the agency's own network, an internal report found

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The man convicted of the biggest CIA leak in history says he doesn't have enough typewriter ribbon to craft his own defense for a separate child pornography trial

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Former CIA agent facing trial for the agency's largest leak drew swastikas on students' books at high school, report says

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The energy crash is going to be huge business for Wall Street

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