Erik Prince

Full Report

Key Points

• Subject: Erik Prince, American billionaire and founder of the private military company Blackwater, now involved in Unplugged, a smartphone startup.

• Unplugged Venture: Prince is promoting the UP Phone (originally “RedPill Phone”), a $850 device marketed as offering “free speech, privacy, and security” with “government-grade encryption” and independence from tech giants like Apple and Google.

• Skepticism and Criticism: Cybersecurity experts dismiss Prince’s claims as exaggerated, calling the venture a potential “right-wing affinity fraud” targeting far-right audiences.

• Controversial Background: Blackwater, founded by Prince, gained global infamy for killing Iraqi civilians and threatening US investigators, raising concerns about his credibility.

• Legal and Ethical Concerns: Prince’s history includes allegations of war crimes, arms trafficking, and unethical business practices, though no specific lawsuits are detailed in the source.

• No Consumer Feedback: Limited public reviews of the UP Phone are available, as it was not yet released at the time of the source (November 2022).

Overview

Erik Prince is an American billionaire, former Navy SEAL, and entrepreneur best known for founding Blackwater (now Constellis), a private military company implicated in controversial operations, including the 2007 Nisour Square massacre in Iraq. Since selling Blackwater in 2010, Prince has pursued various ventures, including logistics and security firms in Africa and Asia. His latest project, Unplugged, is a smartphone startup launched in 2021, promoting the UP Phone as a privacy-focused alternative to mainstream devices. The phone, priced at $850, runs on LibertOS, an Android fork, and is marketed as offering “government-grade” security and freedom from Big Tech surveillance. Prince debuted the phone in June 2022 on Steve Bannon’s “War Room” podcast, targeting a conservative audience.

Allegations and Concerns

• Unplugged Misrepresentations: The MIT Technology Review reports that Prince’s investor pitch for the UP Phone (originally “RedPill Phone”) contains “impossible claims, meaningless buzzwords, and outright fiction.” Claims of “government-grade encryption” and servers that “can never be taken offline” (including one on a vessel in international waters) are deemed unrealistic by experts.

• Blackwater Controversies: Blackwater, under Prince’s leadership, was implicated in the 2007 Nisour Square massacre, where contractors killed 17 Iraqi civilians, leading to global condemnation and legal scrutiny. Prince has also been accused of threatening US government investigators.

• Affinity Fraud Allegations: Cybersecurity expert Nicholas Weaver calls the UP Phone a “right-wing affinity fraud,” suggesting it exploits conservative distrust of Big Tech to attract investment and buyers, particularly far-right groups like Proud Boys and QAnon supporters.

• Foreign Affiliations: Posts on X allege Prince collaborated with Russian assets (Andriy Artemenko and Andriy Derkach) in 2020 to outsource Ukraine’s military and worked with China to train paramilitary groups, raising concerns about his loyalty and ethics. These claims are inconclusive without court records.

• Pegasus Connection: The UP Phone’s CTO, Eran Karpen, previously worked at CommuniTake, linked to NSO Group (creator of Pegasus spyware). Posts on X claim Karpen developed Pegasus, fueling speculation of hidden surveillance capabilities in the UP Phone, though this is unverified.

Customer Feedback

• Limited Feedback Available: As of the source’s publication (August 2022), the UP Phone was not yet released (scheduled for November 2022), so no consumer reviews are available. No user testimonials or ratings were found on platforms like Reddit or X for the UP Phone specifically.

• Public Sentiment: Posts on X and Reddit express skepticism and scorn, with users calling the phone a “grift” and mocking its “RedPill” branding as targeting “gullible right-wing turds.” One Reddit user remarked, “May as well just call it the Q Phone,” reflecting distrust in Prince’s motives.

• Positive Sentiment Absent: No positive consumer feedback was identified, likely due to the phone’s pre-release status and Prince’s controversial reputation overshadowing the product.

Risk Considerations

• Financial Risk: Investors face significant risk due to Unplugged’s exaggerated claims. The €5 million pitch is criticized as unrealistic, and similar privacy-focused phone ventures have historically failed, suggesting potential financial losses.

• Reputational Risk: Prince’s association with Blackwater and allegations of unethical conduct (e.g., war crimes, foreign affiliations) tarnish his credibility, potentially alienating mainstream consumers and investors. The “RedPill” branding further risks alienating non-conservative audiences.

• Legal Risk: While no active lawsuits are mentioned in the source, Prince’s history with Blackwater and allegations of arms trafficking or foreign collusion could invite future legal scrutiny, especially if the UP Phone fails to deliver on security promises.

• Security Risk: Experts like Allan Liska note that no phone is “impenetrable,” as cell tower triangulation can track devices regardless of encryption. Claims of untraceability raise concerns about false security assurances, potentially exposing users to risks.

Business Relations and Associations

• Unplugged Team: Unplugged’s day-to-day operations are led by Eran Karpen, a former CommuniTake employee and veteran of Israel’s Unit 8200 (a cyber espionage agency). Karpen developed the IntactPhone, marketed as a “military-grade” device, raising questions about Unplugged’s technical credibility.

• Political Affiliations: Prince is a vocal supporter of Donald Trump and debuted the UP Phone on Steve Bannon’s “War Room” podcast, aligning with far-right figures. The “RedPill” name targets conservative audiences, suggesting a strategic focus on this demographic.

• Speculated Connections: Posts on X allege Prince started a WhatsApp group with right-wing operatives, arms traffickers, and journalists, and collaborated with Russian and Chinese entities, but these claims lack primary source verification.

• Starlink Mention: Prince’s pitch claims Unplugged servers could connect via Elon Musk’s Starlink, though no evidence confirms an official partnership.

Legal and Financial Concerns

• Historical Legal Issues: Blackwater faced lawsuits and investigations for the 2007 Nisour Square massacre and other misconduct, though no specific lawsuits against Prince personally are detailed in the source.

• No Current Lawsuits: The source does not mention active lawsuits, unpaid debts, or bankruptcy records related to Prince or Unplugged as of August 2022.

• Alleged Foreign Collusion: Posts on X claim Prince attempted to bribe Ukrainian officials in 2020 and worked with Chinese paramilitary groups, but these are unverified and not supported by court records.

• Financial Stability: Prince’s billionaire status suggests personal financial stability, but Unplugged’s viability is questionable due to its unrealistic claims and the historical failure of similar ventures.

Risk Assessment Table

Analytical Summary

Erik Prince’s venture into the smartphone market with Unplugged is marred by overstated promises and a controversial past that undermines his credibility. The UP Phone, marketed as a secure, privacy-focused device, is criticized by experts as a potential scam targeting conservative audiences with buzzwords like “government-grade encryption.” Prince’s Blackwater history, including war crimes allegations, and his far-right affiliations amplify skepticism about his motives. While the phone’s pre-release status limits consumer feedback, public sentiment on platforms like Reddit and X is overwhelmingly negative, viewing it as a “grift.” The involvement of Eran Karpen, linked to NSO Group, raises further concerns about surveillance risks, though these are unverified. Prince’s billionaire status and political connections suggest he can fund such ventures, but the technical and market challenges of privacy phones make Unplugged’s success unlikely.