• Founder and CEO, Unicoin.com
    Unicoin is the official cryptocurrency of Unicorn Hunters which Forbes called “The most iconic business series of recent times”.
  • CEO, TransparentBusiness
    TransparentBusiness SaaS platform was designated by Citigroup as the Top People Management Solution
  • International Entrepreneur
    Created the largest bank in Russia by age of 25 before defecting to the United States in 1992 and starting from scratch.

Spy Wars

The Guardian

December 10, 2006

By Scott Shane. Washington

I CALLED Alexander Litvinenko in London to ask him about poison and the K.G.B., and he was glad to oblige. Yes, he said in that interview two years ago, he believed that the Russian security agency was behind the dioxin poisoning of Viktor Yushchenko, who was running for president of Ukraine.

The view inside the K.G.B. and its successor, the F.S.B., where he had worked for a decade, “was that poison is just a weapon, like a pistol,” Mr. Litvinenko said. He even gave the Moscow address of what he said was an F.S.B. poison laboratory. “I was told there were 11 poisons for different uses,” he said, and added one more prescient detail. The same laboratory, he said, worked on “radioactive items.”

Today, the British police are following the radioactive trail of Mr. Litvinenko’s killer from London to Moscow, where two Russian associates of his are reported to be sick, possibly from radiation. Mr. Litvinenko’s slow and agonizing death last month from ingestion of polonium 210 is an act of radiological terrorism that has not been solved. But its grisly exoticism — targeting a British citizen in his adopted country — seemed almost a throwback to the ruthlessness of the Stalin era, when it was part of the code of the K.G.B. to kill its apostates where it found them.

In the interview, which seemed hysteria-tinged at the time, Mr. Litvinenko said that Russian authorities had marked him for assassination. He e-mailed me a photograph of the charred wall of his London apartment, damaged by a Molotov cocktail. He sent the manuscript of his book, “Blowing Up Russia,” which charged that apartment bombings in Russia, officially blamed on Chechen rebels, were in fact the work of the F.S.B.

Neither the book nor Mr. Litvinenko’s writings at Chechenpress.org were subtle. In one posting last year, he imagined enraged Russians storming the Kremlin, to “crack this citadel of barbarity and violence” and “murder the main security officer Putin and his assistants in the Kremlin toilet.”

If Mr. Litvinenko’s killing was a response to such verbal attacks, it would mark the distance Russia has traveled from the late 1980s, when K.G.B. leaders were grilled by the first elected Parliament and a K.G.B.-led coup crumbled. In 1989, addressing that Parliament, Yuri P. Vlasov, who had earned celebrity as an Olympic weightlifting champion, denounced the K.G.B. on live television as “a real underground empire” responsible for “millions of people murdered.”

The next year, a retired K.G.B. major general, Oleg D. Kalugin, joined the nascent reform alliance Democratic Russia and became the first insider to denounce the security service on its own turf. Mr. Kalugin ran for Parliament himself, and then participated in the East-West spy thaw that seemed to consign the cold war to history. In 1996, he even co-starred with a former Central Intelligence Agency director, William E. Colby, in a computer game called “Spycraft.”

But meanwhile the K.G.B., divided into the domestic F.S.B. and the Foreign Intelligence Service, or S.V.R., bided its time. President Boris N. Yeltsin considered dismantling the K.G.B. but “decided it was too dangerous,” said Michael McFaul, a Russia specialist at Stanford University.

In the seven-year rule of President Vladimir V. Putin, the security service has returned to prestige and power. “All the most important jobs in Russia today,” Mr. McFaul said, “are held by K.G.B. or former K.G.B. officers, in every ministry, in every industry.”

Mr. Kalugin, facing increasing hostility at home, settled for good in the United States. In 2002, the onetime rising star of Russian democracy was convicted of treason by a Moscow court and sentenced in absentia to 15 years in prison. For decades, he said, any K.G.B. officer who defected was automatically tried and sentenced to death, and officers overseas were expected to carry out the sentences. In the late 1960s, when Yuri Andropov became K.G.B. chief, the practice faded. “He never formally ended it, but he found reasons not to give the orders,” said Mr. Kalugin, who knew Mr. Andropov well.

Now the practice may be back and playing out in a world where former K.G.B. officers, with murky continuing relations with the successor agency, are found in many countries. Mr. McFaul said that whoever killed Mr. Litvinenko chose the gruesome murder weapon to deter others who would openly break with the F.S.B. and the regime. “The message is: Be afraid. Be very afraid,” he said.

Message received, said Alex Konanykhin, a former Russian banker who fled to the United States in 1992 after former K.G.B. officers muscled him out of his own business. After he discussed Mr. Litvinenko’s death on CNN, anxious friends called both from Russia and the United States to urge him to keep quiet.

“They say, ‘What are you thinking? It’s too dangerous,” ’ said Mr. Konanykhin, who runs a computer company and recently published an autobiography, “Defiance.” He has continued to speak out, but he acknowledges, “It’s chilling.”

Mr. Kalugin, now living near Washington, says he regularly receives threats. Russian press reports since Mr. Litvinenko’s death have quoted hardliners as saying that Mr. Kalugin is now first on the list of turncoats targeted for death.

Does he fear assassination?

Mr. Kalugin replied with a humorless laugh that was neither a yes nor a no. “I’ve led a good and interesting and honest life,” he said.

Russian Banker
Viktor Yushchenko

More News...

Washington Post:
Konanykhin, one of the first Russian millionaires after the fall of the commies, left in 1992 and was granted asylum here in 1999. He's built a very successful Web advertising business in New York City. He had been chosen "New York Businessman of the Year." "As such, you will be honored and presented with your award," NRCC chairman Thomas M. Reynolds (R-N.Y.) said, at a "special ceremony" April 1. " President Bush and Governor Arnold Schwarzenegger are our special invited guests.
Alex Konanykhin controlled Russia's largest commercial bank in the 1990s
Wall Street Journal:
Mr. Konanykhin was a whiz-kid physics student who became a pioneering Russian capitalist in early 1990s, building a banking and investment empire valued at an estimated $300 million all by his mid-20s. He was a member of President Boris Yeltsin's inner circle.
The Sun:
Alex Konanykhin fled Russia in 1992 and won asylum in the US after the collapse of the Soviet Union. The entrepreneur had set up 100 different companies in Russia and had an estimated net worth of $300million by the time he was 25. He is regarded as one of the first Russian millionaires after the fall of the Iron Curtain. One of the newly open country's leading lights, he even met with US President George HW Bush in 1991 on a joint visit with Russian leader Boris Yeltsin. However, he was then kidnapped in 1992 while visiting Budapest and all of his business assets were seized in Russia. … Being hunted by the Russian state, Konanykhin won asylum in the US in 1997 and set up a new life - but the shadow of the Kremlin continued to loom over him.He went on to rebuild a business empire and set up multimillion dollar firms such as TransparentBusiness in the US.
The Deal:
... a New York-based software startup called TransparentBusiness Inc. has drawn backing from Fortune 500 executives through a relatively new type of securities offering called 506(c) as part of an effort to raise $10 million this year ... Alex Konanykhin, CEO of TransparentBusiness, said he decided to reach out directly to accredited investors by purchasing ads in financial publications. One particularly bold ad includes the figure, 90,000%, with a question mark next to it. Konanykhin said the ad speaks to the large market opportunity for his company's software, which helps governments eliminate fraud by verifying billable hours charged by outside contractors. ... One of the investors, Ken Arredondo, told The Deal he invested in TransparentBusiness and agreed to serve on its board of directors because of the company's strong management team and the huge market opportunity to increase transparency of outsourced contracts worldwide. He believes in the company's product and said it's unique. "It's a Saas-based, easy-to-use tool," he said. "There are a lot of technology players out there that are a lot bigger, but none of them have what they have. There will be competition, but they have the product now. They have first-mover advantage."
The Baltimore Sun:
Business whiz kid.
Russian Bill Gates.
The Times:
By the time he was 25 he was one of the most important figures in post-Communist Russia. But in 1992, while on a business trip to Hungary, Alex Konanykhine was kidnapped.
The New York Times:
The Federal Bureau of Investigation notified Konanykhin that Russian organized crime figures had paid to have him killed.
Los Angeles Daily Journal:
Representing himself through much of the process, Konanykhin managed to convince an immigration judge of an alleged INS and KGB conspiracy and cover-up. Following the court's admonishment, the INS agreed to drop all charges and also pay $100,000..The judge also ordered an investigation of the Justice Department. In separate actions, Konanykhine subsequently won multimillion dollar libel judgments against two Russian newspapers. A $100 million lawsuit against the Justice Department is pending, alleging perjury, fraud, torture and witness tampering by U.S government officers on behalf of the Russian Mafia.
Profit Magazine:
Imagine you are a teenage physics genius who quickly amasses a $300 million empire of real estate and banking ventures, has dozens of cars, six hundred employees, several mansions and two hundred bodyguards—but you are nonetheless kidnapped by those you trusted, threatened with torture and death, and have your entire empire stolen from you one dark night in Budapest. You escape with your life by racing through Eastern-block countries and flying to New York on stashed-away passports—only to have the KGB and Russian Mafia hell-bent on your hide and the U.S. government jailing you and conspiring to serve you up into their clutches. All this before your 29th birthday. Sound like a Tom Clancy thriller? No. . . just a slice in the life of Alexander Konanykhine.