US law enforcement authorities seized 63.7 bitcoins worth about 2.3 million dollars as a ransom paid by Colonial Pipeline Co (COLPI.UL), clamping down on hackers responsible for the most destructive US cyberattack on record.
The FBI attributed the attack to the DarkSide gang, which triggered a days-long outage that resulted in a rise in petrol prices, panic shopping, and localized gasoline shortages. The suspension was a huge political issue for President Joe Biden at a time when the US economy was beginning to recover from the COVID19 epidemic.
During a news conference, Deputy Attorney General Lisa Monaco stated that they had turned the tables on the gang. She also stated that the funds were taken according to a court order. During the briefing, FBI Deputy Director Paul Abbate stated that investigators discovered a digital currency wallet used by the DarkSide hackers to receive money from Colonial Pipeline.
According to Tom Robinson, co-founder of crypto surveillance startup Elliptic, the Bitcoin wallet from which the money was stolen only had 69.6 bitcoins. The confiscation revealed on the 7th amounted to only 63.7 Bitcoins. According to Robinson, it most likely indicated the portion that went to the DarkSide affiliate who had first accessed into Colonial.
Abbate stated that victim assets were seized from that wallet using law enforcement jurisdiction, preventing hackers from utilizing them. The FBI refused to reveal how they gained access to the Bitcoin wallet, highlighting the necessity to guard tradecraft. A San Francisco judge allowed the seizure of money from a bitcoin address claimed to be in the Northern District of California.
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While Bitcoin confiscation is unusual, officials’ competence in tracing digital cash movement has grown as ransomware has emerged as a new national security concern. Not to mention that it strains relations between the United States and Russia even more.
DarkSide, according to Deputy Director Abbate, is a Russian-based cybercrime gang that has targeted at least 90 US firms, including healthcare providers and manufacturers. He also stated that the FBI was tracking over 100 ransomware types.
The Russian gang also has ransomware as a service business strategy, which means that its hackers create and advertise ransomware hacking tools, which they then sell to other illicit associates who conduct the assaults. As of yet, it is unknown which DarkSide collaborators were involved in the Colonial Pipeline strike.
Following the Colonial hacking and subsequent incursions that disrupted operations at a large meatpacking firm, the White House urged corporate CEOs and industry leaders to strengthen security protocols to guard against ransomware attacks.
The US administration has refrained from attempting to outright prohibit ransomware transactions, fearing that it would have little effect on whether or not firms paid ransoms and would instead deter them from reporting strikes. The declaration on June 7th was part of a larger attempt to address the business industry’s profound reluctance to publicly identify hacks and involve the government in crisis response.
Colonial CEO Joseph Blount noted that the corporation had collaborated extensively with the FBI from the beginning and was grateful for their quick action and competence. Blount is scheduled to speak before the Senate on June 8th. He also stated that the only approach to avoid and fight against such threats is to make cybercriminals responsible and destroy the environment that permits them to operate.
Following the incident, President Joe Biden told the press that the US administration had no data tying the ransomware attack to the Russian government. President Biden stated that, while there is no indication that Russia is involved, the hackers’ ransomware is located in Russia. He went on to say that Russia had some obligation in dealing with this.
On June 6th, Commerce Secretary Gina Raimondo indicated that the Biden administration was exploring all measures to guard against ransomware attacks and that the subject will be addressed when President Biden meets Russian President Vladimir Putin. Furthermore, the Biden administration is placing pressure on private companies to strengthen their security.
Bottom Line
As secure as the blockchain technology may be, it is still preferable for anyone planning or already investing in the crypto market to be safe. Cyber attacks are nothing new, and in a system where anyone can see one’s crypto wallet, users must always be prepared to safeguard their profits. There are plenty of tools and apps that could assist you in keeping your money and data safe.