Jonathan and Diana Toebbe Accused of Selling Submarine Blueprints for Cryptocurrency

A former nuclear engineer for the US Navy has pleaded guilty to charges tied to espionage, admitting his role in attempting to sell classified submarine data to FBI agents posing as foreign operatives.

Jonathan Toebbe, who faced a three-count indictment, admitted guilt on 14 February to conspiring to transmit restricted information. This plea could lead to a maximum 17-year prison sentence under a deal reached with prosecutors, where he also agreed to assist in recovering sensitive materials and cryptocurrency payments.

The case alleges that Jonathan and his wife, Diana Toebbe, orchestrated a scheme to trade Virginia-class nuclear submarine plans for cryptocurrency. These plans were covertly stashed on memory cards concealed in everyday items like a Band-Aid, chewing gum packaging, and a peanut butter sandwich. Arrested in October last year, both have been held in custody since.

Diana Toebbe maintains she was unaware of her husband’s actions, seeking release on bond to care for their two children. Her lawyers argue that her mere presence at the “dead drop” exchanges does not prove complicity. Jonathan Toebbe has also stated that his wife was uninvolved in his activities.

Federal prosecutors reveal the FBI intercepted a package in late 2020 intended for an unnamed foreign government, containing classified materials marked “CONFIDENTIAL.” Agents then posed as foreign officials, initiating encrypted communications with the sender—allegedly Jonathan Toebbe—who outlined terms for the exchange.

Through negotiated “dead-drop” locations, memory cards with classified data were handed over in exchange for $100,000 in Monero cryptocurrency, court filings state.

Federal investigators continue to pursue leads to recover the sensitive information and funds involved in the case.