Everything Everywhere Daily — “Hollow Nickel Case”

Host: Gary Arndt
Date: November 18, 2025

Episode Overview

In this episode, Gary Arndt unpacks the enigmatic story of the Hollow Nickel Case—a 1950s espionage caper that began with a Brooklyn paperboy’s odd find and unraveled into one of Cold War America’s most notorious spy ring exposures. Gary explores the unlikely origins, the cryptography and spycraft involved, and its far-reaching consequences for US counterintelligence—all sparked by a single, hollowed-out nickel.

Key Discussion Points and Insights

1. The Coincidental Discovery ([03:09])

• Setting and Discovery:

  • June 22, 1953: 14-year-old Jimmy Bozart, a Brooklyn newspaper delivery boy, is paid with a nickel that feels oddly light.
  • After dropping the nickel, it splits open, revealing a tiny piece of microfilm with rows of five-digit numbers.
  • The chain of reporting: schoolmate’s father (a police officer) → detective → FBI.

• Gary Arndt:

  • “[The coin] was a clever concealment device… the two halves had been machined so that they could be snapped together, turning the coin into a hollow container.” ([03:48])

2. FBI Investigation and Stalemate ([04:44])

• Content of Microfilm:

  • 207 groups of five-digit numbers—an opaque cipher with no key, matching codebook, or suspects.
  • Early guesses were that it used a one-time pad—making decryption almost impossible.
  • Host notes: The coin became “a mysterious hollow coin, a ciphertext, and no leads.”

• Failed Leads:

  • FBI attempts: tenant interviews, die analysis, financial trail following.
  • For four years, the case stalled as cryptographers struggled without context.

3. Soviet Espionage and the Unseen Agent ([06:02])

• Unbeknownst to the FBI:
  • The intended recipient was Renyo Haanen, a KGB agent (alias Eugene Nikolai Maki), living and operating covertly in the US as part of a Soviet illegal residency network.

4. The Breakthrough: Defection in Paris ([06:21])

• May 1957:

  • Facing forced recall, Renyo Haanen defects at the US Embassy in Paris, revealing Soviet espionage methods, and even producing a hollowed-out Finnish coin to prove his claims.
  • Crucial Connection: The fabricated coin with a tiny identifying puncture links his story to the unsolved Brooklyn nickel.

• Gary explains:

  • “Once the FBI realized that Hohanan was the intended recipient of the hollow nickel message, he was able to supply crucial cryptographic information.” ([07:12])

5. Decrypting the Message ([07:23])

• Vic Cipher & One-Time Pad:
  • With Hohanan’s inside knowledge, the FBI decrypted the message.
  • Surprisingly Mundane Content:
    • “A mundane set of instructions… It welcomed Haohanin to the United States, confirmed receipt of earlier communications, authorized the provision of $3,000… and provided procedural guidance on how he was to send encrypted reports.” ([07:42])
  • The value wasn't in the message content, but in linking the cryptosystem and identifying KGB networks.

6. The Spy Network Unravels ([08:00])

• Hohanin identifies key operatives:

  • Mikhail Sverin – a contact already back in the USSR.

  • “Emil R. Goldfuss,” real name Wilhelm August Fischer—better known as Rudolf Ivanovich Abel, codenamed ‘Mark.’

  • Gary:

    • “That man was Wilhelm August Fischer, better known under the name he later gave authorities, Rudolf Ivanovich Abel.” ([08:29])

• Other operatives and collaborators:

  • Included American Master Sergeant Roy Rhodes, later convicted of conspiracy to commit espionage.

7. Abel’s Arrest and Evidence ([09:03])

• FBI Surveillance:

  • With Hohanin’s testimony, Abel (Fischer) is tailed and arrested in June 1957.
  • Discovery of microdot cameras, cipher pads, radios, and hollowed-out concealment devices at Abel’s studio.

• Gary:

  • “These finds, combined with the decoded hollow nickel message and the defector's testimony, gave the Bureau a solid espionage case.” ([09:46])

8. The Trial and its Peculiarities ([10:06])

• Trial Highlights:

  • Not charged for treason (not a US citizen), but indicted for conspiracy to transmit defense info, obtain such information, and acting as an unregistered foreign agent.
  • Hohanan testifies, though defense tries to discredit him as a liar, drunk, bigamist, and thief.
  • Cryptanalysts forbidden to testify in technical detail for security.

• Gary on sentencing:

  • “The relatively restrained sentence reflected, in part, a belief that Able might one day be helpful in a prisoner exchange, a point argued by his lawyer, James Donovan.” ([11:22])
  • Sentenced to 30 years.

9. Aftermath and Cold War Impact ([12:21])

• Espionage Practices Exposed:

  • Training and FBI manuals improved; dead drops, microfilm, and Vic ciphers became known vulnerabilities.
  • Illuminated risks to American personnel abroad (e.g., compromised Army Sergeant Rhodes).

• Abel’s Imprisonment and Exchange:

  • Stayed in US custody for four years.
  • Swapped on the Glienicke Bridge for downed U2 pilot Francis Gary Powers (Feb 10, 1962)—famously dramatized in the film Bridge of Spies ([13:44]).

10. Personal Aftermaths ([14:18])

• Renyo Haanen: Died in a car accident in 1961 in Pennsylvania—“widely believed to be accidental, but you never know.”

• Abel: Honored in the USSR, became lecturer and artist, died 1971.

• James Donovan (Abel’s lawyer): Later facilitated negotiations for prisoner releases in Cuba, died 1970.

• Jimmy Bozart (the paperboy):

  • Received an Oldsmobile 98 from an anonymous donor, sold it, invested proceeds, and began a successful entrepreneurial career.
  • In 1957, Bozart was called as one of 69 trial witnesses.
  • “As far as I can tell, he is still alive. As of the time of this recording.” ([14:53])

Notable Quotes & Memorable Moments

• Gary Arndt, on the message:
  “Even a routine administrative message proved invaluable because it confirmed the cipher system, tied the message back to a specific agent, and validated Hohenen as a genuine defector rather than as a plant.” ([07:59])

• Gary, on the case’s significance:
  “All of this came about because of the accidental discovery by a 14 year old paperboy collecting money from his route.” ([15:15])

• On the impact:
  “By successfully identifying and dismantling one of Moscow’s most sophisticated networks, the case boosted the FBI’s confidence, provided a blueprint for unraveling illegal residency operations, and signaled to the Soviets that even their most secret operatives were vulnerable…” ([15:11])

Timestamps for Key Segments

| Segment | Timestamp | |-----------------------------------|------------| | The Discovery & Coin Explained | 03:09–04:44| | Investigation & Cipher Struggles | 04:44–06:00| | Soviet Agent’s Backstory | 06:01–06:21| | Defection in Paris | 06:22–07:21| | Cipher Decrypted | 07:22–08:00| | Spy Network Exposed | 08:01–09:02| | Abel’s Arrest & Evidence | 09:03–10:06| | The Trial | 10:07–11:54| | Aftermath & Cold War Consequences | 12:21–13:44| | Abel’s Swap & Pop Culture | 13:45–14:18| | Outcomes for Key Figures | 14:19–15:15|

Conclusion

This episode shines a light on how a small act of curiosity can ripple through history. The Hollow Nickel Case not only exposed the techniques and vulnerabilities of Cold War espionage but also proved that intelligence breakthroughs sometimes spring from chance and ordinary people. Gary Arndt’s storytelling brings to life the sense of paranoia, ingenuity, and human consequence that characterized the clandestine battles of the 20th century.