The FBI has arrested the CEO of a Phantom Secure, a company that provides security-oriented products. They sell encrypted Blackberry and Android devices with modified hardware to improve privacy (removing cameras, microphones, and GPS's are common changes). On top of the hardware products, they provide encrypted chat and email services to prioritize security and privacy at the highest level currently possible.

The CEO, Vincent Ramos, is being charged with "Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy); Title 21, U.S.C., Sec. 846 — Conspiracy to Distribute Narcotics; and Title 18, U.S.C., 2 — Aiding and Abetting." The legal document goes on to say that this began as early as 2008, to as recent as February 28th of this year.

Phantom Secure not only modifies device hardware to improve security, but also modifies the software side. They provide PGP encryption services for devices to achieve end-to-end encryption and route services to protect the user's privacy. For additional security, Phantom reserves the ability to remotely wipe entire device data if they are confiscated by legal authorities. Law enforcement sources from Australia, Canada, and the United States all claim that Phantom Secure devices are used for top criminal organizations to conduct illegal activity. We also see an approximate number of Phantom Secure devices in circulation from the document:

According to estimates by international law enforcement agents with whom I have met and discussed their investigations of PHANTOM SECURE, there are more than twenty-thousand PHANTOM SECURE devices in use worldwide, including approximately 10,000 in Austrailia

Check back here at ModMy as this develops, we will continue to post updates on the case.

via Motherboard