Strategy Page on the less-than-perfect result of Russia’s attempt to get hackers to crack The Onion Router for a medium-sized monetary prize:
Back in mid-2014 Russia offered a prize of $111,000 for whoever could deliver, by August 20th 2014, software that would allow Russian security services to identify people on the Internet using Tor (The Onion Router), a system that enables users to access the Internet anonymously. On August 22nd Russia announced that an unnamed Russian contractor, with a top security clearance, had received the $111,000 prize. No other details were provided at the time. A year later is was revealed that the winner of the Tor prize is now spending even more on lawyers to try and get out of the contract to crack Tor’s security. It seems the winners found that their theoretical solution was too difficult to implement effectively. In part this was because the worldwide community of programmers and software engineers that developed Tor is constantly upgrading it. Cracking Tor security is firing at a moving target and one that constantly changes shape and is quite resistant to damage. Tor is not perfect but it has proved very resistant to attack. A lot of people are trying to crack Tor, which is also used by criminals and Islamic terrorists was well as people trying to avoid government surveillance. This is a matter of life and death in many countries, including Russia.
Similar to anonymizer software, Tor was even more untraceable. Unlike anonymizer software, Tor relies on thousands of people running the Tor software, and acting as nodes for email (and attachments) to be sent through so many Tor nodes that it was believed virtually impossible to track down the identity of the sender. Tor was developed as part of an American government program to create software that people living in dictatorships could use to avoid arrest for saying things on the Internet that their government did not like. Tor also enabled Internet users in dictatorships to communicate safely with the outside world. Tor first appeared in 2002 and has since then defied most attempts to defeat it. The Tor developers were also quick to modify their software when a vulnerability was detected.
But by 2014 it was believed that NSA had cracked TOR and others may have done so as well but were keeping quiet about it so that the Tor support community did not fix whatever aspect of the software that made it vulnerable. At the same time there were alternatives to Tor, as well as supplemental software that were apparently uncracked by anyone.