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How should I go about reversing this USB crypto dongle?
This is only commentary with a partial answer, because your question is a bit broad (as you remark yourself). Because at this point no serious answer can be given, I'll mark it as CW.
Feitian produces ...
1
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Where do I find a cheap hardware USB sniffer
My answer is slightly late, but you can check this list: https://sigrok.org/wiki/Supported_hardware#Logic_analyzers
They have support for multiple analyzers, and many of them have cheap Chinese clones....
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