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The Tor Project - a private nonprofit known as the "NSA-proof" gateway to the "dark web," turns out to be almost "100% funded by the US government" according to documents obtained by investigative journalist and author Yasha Levine.
The Tor browser, launched in 2001, utilizes so-called "onion routing" technology developed by the US Navy in 1998 to provide anonymity over computer networks.
In a recent blog post, Levine details how he was able to obtain roughly 2,500 pages of correspondence via FOIA requests while performing research for a book. The documents include strategy, contract, budgets and status updates between the Tor project and its primary source of funding; a CIA spinoff known as the Broadcasting Board of Governors (BBG), which "oversees America's foreign broadcasting operations like Radio Free Asia and Radio Free Europe."
By following the money, I discovered that Tor was not a grassroots. I was able to show that despite its indie radical cred and claims to help its users protect themselves from government surveillance online, Tor was almost 100% funded by three U.S. National Security agencies: the Navy, the State Department and the BBG. Following the money revealed that Tor was not a grassroots outfit, but a military contractor with its own government contractor number. In other words: it was a privatized extension of the very same government that it claimed to be fighting.
The documents conclusively showed that Tor is not independent at all. The organization did not have free reign to do whatever it wanted, but was kept on a very short leash and bound by contracts with strict contractual obligations. It was also required to file detailed monthly status reports that gave the U.S. government a clear picture of what Tor employees were developing, where they went and who they saw. -Yasha Levine