Daniel Khalife: Soldier boasted about stealing 'crypto', trial hears

21 October 2024, 14:04 | Updated: 21 October 2024, 17:33

A soldier boasted about stealing "crypto" shortly after a USB stick containing secret material went missing, a trial has heard.

Daniel Khalife, 23, from Kingston, south-west London, is accused of spending two years collecting secrets while serving with the Royal Signals Regiment and passing them to Iranian agents.

He denies the charges, saying he only handed over fabricated documents in an attempt to be recruited by MI6 as a double agent.

After he was charged under the Official Secrets Act, Khalife allegedly escaped from prison under a food catering van on 6 September last year, causing a nationwide manhunt.

The court heard the stick was said to contain "crypto" associated with the Magpie system, a part of Falcon, the army's secure mobile internet system.

On 30 June 2020, the army security team was informed that a Magpie e-crypt USB stick was missing from 230 squadron at the 16th Signal Regiment in Stafford.

It was said to be a "user access device" which was part of the cryptographic system that ensured that only those for who the information was intended would be able to access and read it.

Investigators found the item, which had been in a plastic ziplocked bag in a secure area known as "red room 2", had last been physically checked on 12 March 2020 - 11 days before the first COVID lockdown.

Mark Heywood KC, prosecuting, told Woolwich Crown Court that a "thorough investigation took place that included all the equipment being removed from the area in question".

Colonel E, the principal security adviser for the army, who was granted anonymity by the judge, told the trial: "To the best of my knowledge, it has never been found."

In a message on 28 August, Khalife allegedly made reference to the missing USB device, telling his Iranian contact: "We do checks every week, so when the one I took went missing they went crazy."

The contact replied: "I remember you stole this crypto from the other team."

Khalife added: "Yeah they blamed him. It was the first few days and there was no suspicion on me. I said I never been in the crypto room and they believe me. It's over now."

"Good for you," the contact replied.

Khalife denies that he stole any cryptology material, telling police: "I had to tell them things which would look bad to you. If it didn't look bad to you, then they're not going to believe me. Nobody has stolen any crypto."

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Khalife denies committing an act prejudicial to the safety or interests of the state, eliciting information about members of the armed forces and escaping from lawful custody.

The trial continues.