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The assessment concluded that Smartmatic's susceptibility to Venezuelan government manipulation makes the acquisition a potential instrument for Venezuelan officials seeking to undermine confidence in, or manipulate the electoral process in, the United States. This finding led to pressure from the Committee on Foreign Investment in the United States (CFIUS) that resulted in Smartmatic divesting its ownership of Sequoia in 2007.
In March 2018, Smartmatic ceased operations In Venezuela after publicly accusing the Maduro regime of inflating voter turnout by over one million votes in the August 2017 National Constituent Assembly election- figures that diverged from data recorded by Smartmatic's voting machines. This represented a break between Smartmatic and the Venezuelan government after years of the company providing electoral technology to Venezuela.
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https://x.com/DNIPulte/status/2081536270052806814

DNI Pulte @DNIPulte - Redacted Document: CIA NOTE
assessment that Smartmatic's acquisition of US voting systems company Sequoia posed a "moderate threat" to US national security.2
Prior to Venezuela's 2012 presidential election, reported that Chavez's intelligence services, including the General Directorate of Military Counterintelligence (DGCIM) and the Bolivarian Intelligence Service (SEBIN), worked with the National Electoral Council (CNE) and Smartmatic to develop plans to manipulate election results using preprogrammed voting machines. reported that these plans called for deploying altered machines to approximately 300 voting centers in traditionally pro-Chavez areas to ensure victory by approximately 1.5 million votes.3
Following the election, which Chavez won by approximately 1.6 million votes, sources reported that Chavez congratulated his team for successfully implementing the manipulation plan.4
In September 2020, reported that Venezuela had developed detailed technical plans to manipulate the December 2020 National Assembly elections using what were
According to this reporting, the technique involved creating a second set of virtual machines that would replicate legitimate voting machine results, then substitute manipulated data while making votes appear to originate from legitimate machines.
(U) Technical Capabilities and Vulnerabilities
CIA analysts assessed in 2006 that certain capabilities regarding electronic voting manipulation were technically possible and operationally feasible.67 Specifically, that voting machines
in Venezuela had unspecified artificial intelligence components installed, were designed to alter vote tallies, could detect when they were being audited, and could provide printed receipts without registering, recording or transmitting those votes. While CIA analysts judged these capabilities were theoretically achievable, this assessment focused on technical feasibility rather than confirmation that such features were actually implemented.
A 2013 CIA alternative analysis, produced using the "Devil's Advocacy" methodology, outlined a plausible scenario for how large-scale electronic manipulation could have occurred in Venezuela's 2012 election without detection. This analysis noted that Venezuela's electronic voting system was vulnerable to insider access, the centralized nature of the CNE's control over voting technology, and gaps in opposition monitoring capabilities. The report assessed that if such manipulation occurred, "elections in Venezuela and other countries that are clients of the technology provider could be in doubt."