Was Bitcoin Created by the NSA?

Labyrinth Capital
20 min readAug 20, 2023

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Introduction:

The theory on Bitcoin being created by a government entity has long been contested within the crypto community. This has been largely labelled a ‘conspiracy’ and is a tough one because, on the surface, it seems to lack any real plausible evidence to suggest that Satoshi Nakamoto is not a real person or group.

Today, I will be conducting a Case Study on the thesis of Bitcoin, its creator and the true intentions behind the asset. Much of this is theory alone, however, I will also be adding some conclusive evidence from a variety of sources too as well as going into the true intentions of the Western Alliances.

Current System:

The current financial system as described by myself many times, is a system built off ‘IOUs’. This is simply debt-based and a ticking time bomb waiting to blow, with the dollar being dangerously inflated and underpinning the entire global economy as the reserve. With this, there is impending risk surrounding the dollar's eventual demise which is increasing by the day, yet abandoning this system that has stood the test of recent times is not an easy task. It requires seamless but timely transmission to keep the masses dependent and in a constant unquestionable state.

The emergence of BTC and the G20 summit

In order to understand the agenda behind Bitcoin, we must first grasp the agenda behind digital currencies. Whilst on the surface it may seem like an innovative convenience which benefits the public with not only ease of use but also security, it is much darker than that. See, digital currency will not simply be like traditional fiat, but instead, digitally issued directly by the Central Bank hence the name Central Bank Digital Currency. With this comes a range of unethical and questionable features including the programming of such legal tender.

With this, Central Banks are in control of your capital and can manipulate at will. If you’re in touch with the times we are going into, you will understand how current culture will directly abuse this. It is no longer simply a legal tender, but now an authoritarian tool that can be utilised by the suits to keep you in check. This is not an if, this is a when.

See the below tweet of the head of the European Central Bank, Christine Lagarde, talking about how the Digital Euro will likely be programmable and limit the publics' ability to purchase anything above 300–400 euros. She mentions how currently, cash transactions above 1,000 euros are banned with jail and fines implemented if caught. The below video shows you that this is not simply a conspiracy, but an agenda intertwined with climate change to fool you and your perception of what is really happening. Soon anything under 5 euros will not be controlled, because once you can manipulate how the general public spend and allocate their capital, inflationary and deflationary problems no longer exist. The fair market is mere fiction.

See here: https://twitter.com/WallStreetSilv/status/1692491539295940696

So okay, we understand now that Central Bank Digital Currencies (CBDCs) are a 30–40 year plan which in 2023, is nearing its inception, but what does Bitcoin have to do with it?

Well funnily enough, as the United States subprime mortgage market in 2007 and 2008 almost led to the collapse of the entire global banking system spurring turmoil in the markets and prompting The Great Financial Crisis, financial goliaths from the investment world like the Lehman Brothers, Merrill Lynch, and Bear Stearns crumbled under the pressure. Bear Stearns was sold to JP Morgan, Merrill Lynch survived through a merger with Bank of America, whilst the Lehman Brothers were wiped off the face of the earth.

In the fall of 2008, a G20 Summit held was focused directly on the financial crisis, and among other things, a transformation of the monetary system was a major topic of discussion as reported at the time. If you didn’t already know, the G20 summit is a group consisting of world leaders from 19 different countries and the European Union who work together to address economic issues impacting the global community.

Coincidentally, in the months following this G20 Summit, in 2009, Bitcoin appeared from the shadows by a mysterious person or group using the pseudonym Satoshi Nakamoto. The Bitcoin whitepaper was released via a cypherpunk mailing list and the open-source code was published on SourceForge. So let's clarify, the housing crisis hits in January 2009 and Satoshi’s whitepaper is published in March 2009, just months after the G20 summit? Well, these timings are definitely not extremely unusual or related at all.

Satoshi Nakamoto

Even from a logical standpoint, the emergence of Satoshi makes almost no sense. Rarely in history has there ever been someone who disappeared into the shadows leaving behind one of the most innovative technological advances in recent times. Furthermore, history shows that 99.9% of the time any brilliant software or product is created, it is almost always patented and then sold or allowed to be used in some way. Is it not insane to believe that the person or people who own over $100bn worth of BTC have simply left it idle? Is this not logical proof that this is simply government funds? Is it not strange that in today’s age, with all of the computer technology, and forensic science etc, that even with a decade of Bitcoin’s existence, no expert, government, journalist, investigative reporter or media has tried or even gained traction in finding one man or group in Satoshi?

Whoever is behind the Satoshi Nakamoto pseudonym would need to possess some incredible expertise to avoid such exposure especially when you acknowledge the prominence Bitcoin has gained. An asset that directly challenges the traditional finance world, yet governments don’t care about who created it? Seems highly unbelievable. Even when you consider what Satoshi would need to be like, he or they would need the education of an economist, the mind of a mathematician, and the skills of a computer programmer and engineer. This requires extensive knowledge over numerous fields yet somehow Satoshi Nakamoto has remained completely under the radar and is largely believed to be one man.

We also shouldn’t ignore the primary fact that Satoshi Nakamoto when translated into the Japanese dialect equates to the following:

Satoshi= Source of wisdom or intelligence

Nakamoto = Middle or central or root origin.

Does this translate to ‘Central Intelligence’?

To me, there is a valid argument that Bitcoin may have been a government creation and that Satoshi was simply a mystical character created to put a blur in the picture. Seeing how paranoid the government is and how they push to control everything, would they willingly give that power away and ignore the creator of such brilliance? Would they allow a system that directly competes with them to exist? If the government did create Bitcoin and somehow they have all of the Satoshi private keys, the government would be able to fund anything it wants at any point (think during a war or black ops operation) without anyone intervening or knowing.

Okay, but maybe you’re a patriot and you think your government is innocent? Well, let's take a little history lesson because you will be shocked at the truth. And yes, this does very much relate to Bitcoin and motivations for government creation. Let’s talk about CryptoAG.

CryptoAG

You may or may not have heard about CryptoAG. It seems that many in the crypto space especially, are unaware of what CryptoAG entails or how it may or may not relate to crypto. Well, first of all, you have the name, CryptoAG, but what actually was it?

In 1950, a company formed in Switzerland called CryptoAG. It specialised in creating encryption technology as well as helping secure communication lines. Back then, this was hugely innovative, and if you were a government you were almost always eagerly looking to buy from CryptoAG to communicate with other countries as well as military powers because you were told it was the most secure. This technology meant others could not listen to your communications at all.

The basis of CryptoAG was founded in 1920 by a man named Arvid Gerhard Damm. He created AGCrypto Teknik. The company initially specialised in creating devices which down-patented a c-36 mechanical cryptograph machine. The purpose of said machine as mentioned above, was to encrypt communication lines. After Damms death prior to World War Two, an early investor called Boris Hagelin took over the company and built it up.

As the war loomed, Hagelin had eager customers when Germany invaded Norway in 1940. In response, Hagelin travelled to the US and managed to connect with the appropriate people to have his products put on the map within the deep state. The device played a major role in the war as US supervisors and officials marked the device ideal for battlefield use, purchasing over 140,000 units. This alone made Hagelin popular within the central intelligence community.

From recent reports and leaks, we now know that back then, cryptography was at the centre of America's focus and the practice of secure communications was in high demand. As time went on, Hagelin rose to high places and was further surrounded by more higher ups. He famously was buddied up with the Deputy Commander of the CIA as well as the Chief Cryptologist for the NSA, positions that could almost certainly shape the world at will.

As the 1950s came around, Hagelin moved back to a post-war Europe in Switzerland to avoid taxes. This is where he created the new company and renamed as CryptoAg. The now deep state connections Hagelin had made, meant that CryptoAG was doing business entirely according to the US military interests, and selling products to countries the US had to approve of.

In doing so, CryptoAG began selling superior products to the US, but diminished and weaker products to opposing and inferior countries as instructed. In fact, the power grab got so huge, that in 1950, it was officially stated that Hagelin had almost no say in what happened with the company, but instead, CryptoAG was run and owned by the CIA and BND. The United States and West Germany Intelligence Agency. With this came a new operation, operation Thesaurus.

Here is how it worked. Products were sold by CryptoAG under the independent company to unknowing foreign nations who believed this was merely an independent Swiss company. Whilst unbreakable devices were sold and distributed to the US and Germany, manipulated and tampered devices were sold to everyone else. Anyone who purchased from CryptoAG, was paying the CIA, NSA and West German allies for the privilege of being spied upon. This device would act as wire taps on phone lines. As the 1970s came along, the CIA officially bought CryptoAG under the radar without countries knowing.

With over 120 countries compromised and unaware, the US had the ultimate weapon listening in on every single device sold to foreign nations. No one suspected a single thing. We, of course, have little scope into how profound this operation was due to the large secrecy of the CIA and co, but we can see clear examples displaying how effective the operation was. Chilean President Allende in 1973 was blocked and killed due to CryptoAG as well as the exploitation of human rights in Argentina’s military Junta in 1970.

By the 1980s, over 120 different countries were paying for manipulated encryption tech, being spied upon by US and German intelligence. The only countries who denied buying the tech from CryptoAG, were Russia and China. Funny that isn’t it? It should however be said, that the US still benefitted by engaging with countries closely associated with Russia and China, essentially giving them an advantage in the constant tug of war over global influence and proxy conflicts.

As time went on, leaks started to seep out to the public. There was incriminating correspondence between Hagelin and high ranking members of the NSA, as well as President Raegin making careless statements with the level of information America had access to. All of this snowballed up until the 1990s, when the German intelligence BND sold half of CryptoAG to the CIA due to fear of their exposure being too high. It got to the point where they knew backlash would cause chaos and it was famously reported that whilst the BND wanted to use the devices for more ethical use, it was always the CIA and NSA that would shut them down.

Following this, the CIA continued to use CryptoAG to sell to unknowing governments making billions up until randomly stopping in 2018, when they sold the business. That’s right, 2018, 50 years of spying on every single government. But wait, you don’t think it was that bad? Well in 1980, over 40% of diplomatic cables and communications were over CryptoAG systems. That is in 1980, so you can imagine what 2018 would’ve been like. 2018, also being the year Bitcoin gained significant traction and exposure in the mainstream spotlight as well as Edward Snowdon blowing the whistle on CIA covert operations.

So that’s it, CryptoAG was split into two companies, one called CyOne Security and the other being Crypto International. Both of these companies deny any involvement in foreign governments to this day, despite all CIA leaked documents saying otherwise.

So why did I tell you all of this? Is it simply down the name of the company? No. See a major problem for the US and CryptoAG, was funnelling money through this company. It was one of the biggest downfalls for the business as a whole. The CIA had a backdoor into the system and many believe that they knew early on, that in order to carry on such an operation, they would not be able to fund it with normal routes. Creating a digital currency in Bitcoin, not only acts as invisible money but gives them the ability to fund and approve of rogue nations as well as criminal terrorists. Furthermore, it gets us used to digital currency, pre-conditioning us. With the clear ‘decentralised’ USP, you are also able to get a gist of the people who oppose digital government money, which is what the end goal clearly was all along.

We can even start to apply this to the chart. Anytime there were sanctions put on Iran or North Korea by the US, the price of Bitcoin seemingly spikes. These correlations point to nations using Bitcoin as a means to circumvent regulation. Think I’m reaching? Read further.

NSA 1996 Whitepaper

Around the time that Germany sold CryptoAG to the CIA, a newly published whitepaper was released online by the NSA. It was named: “How to make a mint: The cryptography of electronic cash” It detailed blockchain tech and how to make ‘electronic cash’. This was one of the first reported aspects of digital currency being prevalent in government bodies. Below is an extract from the paper:

Again, we have to question whether all of this is a mere coincidence. Timing is everything. Cryptocurrencies didn’t gain popularity until 2018 and up to that point, there were major catalysts such as the bust of Silk Road as well as Mt.Gox, false flags that could easily be initiated and enhanced by governments. Furthermore, if I were the NSA, seeing the current economic system slowly eroding before my eyes, I would quickly be looking at an ultimate, natural evolution. Bitcoin seems like the perfect match, especially after 2008 which showed the weaknesses of the entire current system, and it seems they knew this.

The Whitepaper as a whole is viewable here: https://groups.csail.mit.edu/mac/classes/6.805/articles/money/nsamint/nsamint.htm

Silk Road and Dead Billionaires

Silk Road was a major one. It was the first modern dark web marketplace where users could anonymously buy and sell illegal products and services using Bitcoin. It was also a black market for human trafficking, something I’ve talked about constantly and how it is the fundamental currency for everything in motion today. In 2021, the government put a stop to the black market, seizing almost 50,000 BTC valued at over $4bn. It seems that every single government public operation involves BTC as currency and the government keeps it.

We also cannot ignore the consistent stories of BTC and crypto billionaires and millionaires being found dead. This seems to be a constant barrage of news articles displaying this, and whilst some may be down to negligence and unethical practice on the high net worth individual, it simply cannot be all of them. By erasing millions and billions of dollars worth of market share from the markets, the majority are then in control, in this case being the supposed deep state/ governments.

Bitcoin coding

It is also well-documented that Bitcoins coding is used and created partly by the NSA. SHA was created by the NSA. It’s one aspect of SHA-2 created by the NSA in 2001. It specifically stands for secure hash algorithm and is a series of hash functions created by the NSA. SHA 224, 556,384 and 512 are all created by NSA as varieties.

Bitcoin uses double SHA-256 so you run it through input and output twice. This may get confusing but the equation is the following:

Input>>SHA-256>>Output.

As stated before, this is well documented and is not a secret. The patent (US6829355B2) shows this, created by Glenn M Lilly and assigned to the NSA.

See below:

SHA-256 is used in various aspects of the Bitcoin protocol, including the process of mining, block hashing and transaction signatures as well as address generation. Overall, SHA-256 plays a critical role in the security, integrity, and functioning of the Bitcoin network. It provides a strong and widely accepted cryptographic foundation for various aspects of the protocol but was evidently created by the NSA.

To go deeper, HASH 160 is the hash algorithm that Bitcoin uses for turning a Bitcoin public key into a Bitcoin public address utilising the following cryptographic functions:

SHA-256 → RIPEMD 160.

For SHA-256, the starting parameters were chosen by the NSA themselves, however, to play devil’s advocate, RIPEMD, on the other hand, and unlike the SHA coding is the product of an open design. The extent of if this open design has a backdoor, however, is up for debate. Hash160 is used in BTC to turn public keys into addresses through conversion as well as generating addresses. Furthermore, the Hash160 enhances privacy by avoiding direct exposure of the public key and creates a shorter fixed-length representation of a longer piece of data, particularly public keys as mentioned above.

Hash160 (RIPEMD160 + SHA-256)

Here is where it gets more interesting. RIPEMD (RACE Integrity Primitives Evaluation Message Digest) as mentioned above, is a family of cryptographic hash functions that were developed as part of the European Union’s RACE project. These hash functions are designed to produce fixed-size hash values from variable-size input data, providing data integrity and authenticity. The most commonly used variants in the RIPEMD family are RIPEMD-128, RIPEMD-160, RIPEMD-256, and RIPEMD-320.

RIPEMD is not as widely used as some other hash functions like SHA-256, but it has found applications in certain cryptographic protocols and systems. In the context of Bitcoin, RIPEMD-160 is used in conjunction with SHA-256 to generate Hash160 values, which are used for address generation and privacy enhancement.

Being created by The European Union’s RACE (Research and Development in Advanced Communication Technologies in Europe) project does bring about a red flag, as this was a research initiative launched in the 1980s with the goal of advancing and promoting the development of advanced communication technologies in Europe. Sound familiar? The project was part of the European Commission’s efforts to enhance Europe’s competitiveness in the rapidly evolving field of telecommunications and information technology.

BTC uses secp-256k1. The use of secp256k1 and elliptic curve cryptography overall forms a critical part of Bitcoin’s security infrastructure, enabling secure key management, transaction signing, and validation within the network. The secp256k1 curve is defined by the standards of the U.S. National Institute of Standards and Technology (NIST) but is not part of the NIST-recommended curves, still being specifically chosen by Bitcoin’s creator, Satoshi Nakamoto, for its certain properties. Could this be the real creators way of coating true intentions by referring to a completely unrecommended curve? If there is something the powers at be are good at, its putting the truth in plain sight and subtly refusing involvement when they are in fact, very much involved.

Economist Magazine

As mentioned in the beginning, the agenda has always been to create a digital economy run by a centralised power. This has been a long plan initiated by the suits to create a totalitarian environment where perception and belief is completely controlled. An Economist magazine, of which is owned by The Rothschilds was published in January of 1988 talking about a one world currency to be ignited as cash burns and a new system arises. Funnily enough, the year signified on the crest of the phoenix is 2018, the same year that initiated mainstream Bitcoin adoption.

Furthermore, that precise magazine was published exactly 33 years apart between the new cover published by The Economist in 2021, titled “Govcoins”. This issue went into digital currencies and explained how they would transform traditional finance. Govcoins, being a term for CBDCs. On said cover is the usual pyramid with the eye, as well as the words infused with “IN TECH WE TRUST”.

See below:

1988
2021 (33-year difference)

Blockchain Creation

Once again, with blockchain being seemingly created by Satoshi Nakamoto in the 2009 Bitcoin whitepaper, it seems suspicious that a similar idea was proposed almost 20 years prior by Ripples David Schwartz. Although not associated with Ripple back then, a patent viewable on Google shows registration in 1988.

Patent: US5025369A

Preview:

To add further credence to this theory, the now-deceased billionaire John McAfee tweeted this out prior to his death. This is now a deleted tweet. He implied that Schwartz knew who Satoshi was or that Schwartz was in fact part of Satoshi Nakamoto himself.

The theory here is that David may or may not have had huge involvement into the creation of the blockchain and patented it in 1988, the same year the powers at be are pushing forward with plans to begin phases of the digital era. The NSA then publish their whitepaper 8 years later in 1996. Bitcoin was taken later on to act as a prototype to fund operations and initiate a decentralised economy that would eventually come crashing down. NSA pushes Bitcoin after the housing crisis realising the system is more fragile than seemed, CBDCs conclude the 2030 goal that had been in the works for a long long time.

To back this there is evidence stating Schwartz was often in communication with the NSA. Here is what has been published by Forbes:

Moreover, many bankers and top executives have come out over the years protesting their belief that the powers at be and big bankers are scared following the 2008 debacle. Former Goldman Sachs executive Raoul Pal has gone on record stating that he believes BTC’s pseudonymous founder was actually just groups of government employees in the US National Security Agency (NSA) and the UK’s Government Communications Headquarters (GCHQ) who were tasked with experimenting with possible solutions to game out future threats to the West’s international monetary dominance. The former Goldman Sachs executive says he spoke with a Department of Defence (DoD) official in 2013 about such threats. They responded with the following:

“They periodically reach out to people like me, thinkers about stuff, who are looking at crises and things like that, because their job is to assess risk. And I was talking to them about it… and he said, ‘We’re worried about debt, we’re worried about the system blowing up.’

Pal said that BTC’s halving cycles also give credence to the theory.

“I don’t think it’s a coincidence it came out in the (2008) financial crisis. I don’t think it’s a coincidence that the halving cycle and all of this [are] related. It is the solution, always has been the solution. You just can’t go there tomorrow.”

So with this all collectively, it seems highly illogical to simply disregard any theory on Bitcoin being created by the government. Bitcoin gave the masses a way to become confident and popular on the blockchain, all whilst prepping them for CBDCs and a cashless order.

If the plan is as clearcut as I see it, id propose the following is likely:

- Roll out the NSA created BTC to get masses excited about decentralised digital currency and get them on the blockchain.

- In doing so, have a way to fund operations as a precursor to CryptoAG.

- Call it Crypto to tease. Symbolism is key.

- Implement plans for a government CBDC throughout the nations with the US being last.

- Initiate a false flag that crashes the markets, fiat and crypto maybe through EMP or cyber. BTC fails, the government are done playing with you, you did your job.

- Allow the fiat system to stay burned, do not recover it like past crashes.

- Get people desperate through hyperinflation or deflation to the point where they cry out for a saviour.

- Announce the CBDC plan will be the replacement for fiat. Incentivise it.

- Outlaw cash, gold, silver and other physical metals.

- Outlaw all non-government crypto as dangerous and used by criminals. Funnel everyone into the government-monitored CBDC.

- Require embedded RFID chips or biometric identity for transactions to be made with the CBDC. Refusing this makes you an outcast.

You now own a network of data, the order is set.

Conclusion:

So what do we think? Is Bitcoin simply a trillion dollar trojan horse that is no bother to the powers at be? Would they allow such an asset to run rampant in a system that has for centuries been controlled from top to bottom? Or, were the government deeply intrinsic and clever with their findings? Did they know the huge market for the distrust in the government and capitalised on it? By creating a ‘decentralised’ asset they could stay ahead as the world power for the future. After all, the very idea Bitcoin is decentralised is almost false in itself. Every exchange bar decentralised ones require you to KYC and show addresses right? So even if BTC has no back door, your identity is linked to these public companies which they themselves are funded by big banks.

It seems to me that we are nearing an attempted CBDC inception via a top-down, forced implosion of the current system through a centrally owned deep state initiation. This is fuelled by globalism to shift us towards an eventual totalitarian world. This is a quantum awakening and only we the people, can collectively stop what has been planned for an incredibly long period of time as illustrated. I hope you now understand more.

Sincerely.

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