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© Thomson Reuters 2021.U.S. seizes $2.3 mil in Bitcoin paid to Colonial Pipeline hackers
By Sarah N. Lynch, Christopher Bing and Joseph Menn WASHINGTON©2024 GPlusMedia Inc.
46 Comments
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Blacklabel
“The seizure announced Monday was of just 63.7 Bitcoins, which Robinson said likely represented the share that had gone to the DarkSide "affiliate" who had initially hacked into Colonial.”
The Avenger
Those FBI guys pretending to be Russians will be very upset.
Really, seized the Bitcoin? Really. Sorry yes OK I believe it, I also believe in Superman and the sugar plum fairy too.
Blacklabel
Seeing as “the Russians” don’t keep their wallet in San Fran, there are now narrative problems here.
meanwhile Darkside still have their cut and the heat is off Biden to demand Putin do something. Curious timing, hope they didn’t just take some random guy’s Bitcoin.
Alex
Either this is a pathetic lie or the blockchain technology is not as secure and anonymous as we all thought.
Desert Tortoise
And you know this how? Current Russian law does not permit their banks to transact any business in crypto currencies. A law before their parliament proposes to ban the possession and use of cryptocurrencies in Russia. It is currently technically legal to mine it but the miners must sell their bitcoin abroad for cash and not take possession of it. This new law would make even that illegal. Firms would be prohibited from taking payment in crypto currencies. Big fines and prison time.
Desert Tortoise
The value of those 63.7 Bitcoins at the time of the hack was about $4 million, in other words the great majority of the total ransom payment.
Desert Tortoise
Colonial Pipeline paid 75 Bitcoin. 63.7 Bitcoin were recovered. Go ahead and do the arithmetic Blacklabel. That is 85% of the ransom. Bitcoin has lost enormous value since that ransom was paid.
divinda
The main value of Bitcoin is that its blockchain algorithm is considered very secure.
If the FBI can do this, and the do not say how, it means there is an unknown and exploitable hole in the algorithm and it destroys the credibility of Bitcoin.
Not a good day for crypto.
Desert Tortoise
It's called computing power. Just about any encryption can be broken with enough iterations. The more computing power one has the faster this can be accomplished.
Numan
@Blacklabel
LOL! The Chinese and the Russians hacked the US when trump was in office, and he did nothing, but try to get his boss Putin invited to the G7 in Florida.
Blacklabel
Nothing wrong with meme stocks, they are legitimate US companies that actively trade on the US stock market. Sorry you dont have any money to invest, thats the only reason you could possibly be mad about it.
GdTokyo
You’re a day trader. You don’t invest in companies because they are fundamentally sound, You invest (gamble actually) based on nothing more than volatility.
I actually create goods and services that benefit society.
SuperLib
From what I read the FBI were able to hack into the hackers network, noy hack bitcoin itself.
Alex
Precisely.
Wakarimasen
I thought Bitcoin was supposed to be immune to this type of law enforcement. Another reason to avoid it like the plague.
GdTokyo
The only reasons to use bit coin are because you’re a cyber ransomed, a drug dealer, a money launderer, or a day trading “meme stock expert”
Its a means to funnel illicit gains and nothing more.
theFu
Bitcoin isn't anonymous. It just takes some detailed accounting which computers can handle.
As to how they got the private key ... well, don't have your private key on any connected computer. Keep it on 3+ external devices. Never on Windows. Never on an i-Device. Never on Android and probably never on OSX. Only use a temporary, "Live Boot" OS, like most Linux distros provide and only use those when it is time to do a transaction.
theFu
It is extremely unlikely that anyone can "crack" a private key in the next 200 yrs. The math just doesn't support that. But hacking into a poorly secured system - that isn't nearly as difficult as 99.99% of the people believe.
I have serious doubts in believing the wallet with the private key was actually in California, unless they happen to have it on a VPS. These people shouldn't be that stupid.
Commodore Perry
GdTokyo Today 10:09 am JST
Fiat currency, of course, is never used in ransoms, by drug dealers, money launderers, or in day trading
Blacklabel
Actually I’m not. That’s just your assumption.
Blacklabel
So which one is Elon Musk? and the legitimate companies that hold Bitcoin and accept Bitcoin as payment?
Goodlucktoyou
FBI was tracking them for over a year and it happened on their watch.
This is factual. The hackers provide a service for a commission. FBI caught the people who hired them, not the hackers.
ian
Big blow to ransomware gangs.
Victims might not be so willing to pay now after this incident.
According to NBC even though Colonial paid and was given the decryptor, it was so slow colonial ended up restoring it's system from backups in the end.
HonestDictator
The same ones that believed (or intentionally push the false narrative) that somehow Biden's administration paid the Colonial Pipeline ransom all by their lonesome.
Good to see our federal cyber security team back in function after a certain previous POTUS tried to neuter their ability to function in hopes they could "win" another term by hook or by crook.
Ego Sum Lux Mundi
If the US gov has really done this, Bitcoin and other crypto currencies have no future. Good old fashioned used bundles of notes stuffed in a mattress are safer.
virusrex
Finally some good news about this kind of crimes, it may not be the case but it is tempting to relate this to the change of US government.
The Avenger
Based on years and years of observing claims and then later finding the truth, I would not trust anything that comes out of Washington. Also these same people don't mention they are trying to destroy Russia's economy with sanctions. Just look at Nord Stream II, New and expanded NATO bases and Ukraine.
Zaphod
Biden set the precedent by allowing to pay off infrastructure blackmailers, so now we will more of it. Actions have consequences.
Zaphod
Blacklabel
LOL yeah, but the corporate media will paper that over, like they always do with inconventien facts.
Its got to be those evil "Russians"!
Express sister
Ah yes, that famous CEO of Colonial Pipeline Company... Joe Biden!?
Desert Tortoise
As I said earlier, Russian banks, companies and private citizens are not permitted under Russian law to buy, sell, trade, or own cyber currencies. If Russian crooks are dealing in Bitcoin or similar, they cannot do so in Russia. Their wallets have to be kept elsewhere. This is not hard to understand.
Desert Tortoise
Show us where in Federal law any agency of government at any level has the authority to tell a private party not to pay a ransom? A President could tell Colonial Pipeline not to pay the ransome. The FBI routinely does. But no level of government has the power to stop a victim from paying ransom. That is reality. Btw, this was hardly the first ransomware hack. These have been happening for many years.
Desert Tortoise
Is that supposed to be a bad thing?
William Bjornson
We can discuss the security of Bitcoin or we can discuss the security of the United States as we see quite graphically what WILL happen to our most essential, Corporate compromised systems ALL AT ONCE because it COSTS MONEY TO IMPLEMENT ADEQUATE SECURITY and that money is better sent to the profit column than to ensure that, should America find itself in the sadly likely case of being involved in a major war, we can expect that, suddenly, NOTHING will work. Our U.S. generals and planners seem only capable of thinking in bombs bursting in air and rockets red glare and not a completely paralyzed, communication compromised mob of confused, disorganized people trying to organize a defense. The benefit of this attack should be obvious. But Corporate will spend much PR money obfuscating their own responsibilities here that would be better spent on IT. But this IS America and 'privatization' has left us strategically and tactically naked if this event is any example of possibilities. This was a GOOD thing, folks. And we need another BIG one because you have to hit an American in the head at least twice to get us to pay attention...maybe this is what the END of Empire looks like as endogenous corruption rots the very roots of a nation...
Strangerland
Wallets are not 'kept' anywhere. They are simply the public key of an encryption algorith. I can have wallet stored on a piece of paper, or in my head.
You're talking about hosted wallets. This is where a service stores both your wallet and the key, so that they can manage transactions in your wallet on your behalf. In this case, the wallet is stored on the server, and your comment is applicable.
But for anyone using their own wallet without a hosted service, they most definitely can have that wallet wherever they want.
Strangerland
An affidavit filed on Monday said the FBI was in possession of a private key to unlock the hackers' Bitcoin wallet. It was unclear how the FBI gained access to this key.
I really wonder about this. It sounds like the FBI may have been doing some hacking on their own. Or, they have computers strong enough to crack encryption algorithms, which is worrying.
Strangerland
If the US gov has really done this, Bitcoin and other crypto currencies have no future. Good old fashioned used bundles of notes stuffed in a mattress are safer.
How would this prevent the FBI from doing the exact same thing and just taking the cash?
Strangerland
Or a person who doesn't want the banks to take a cut of their money.
Strangerland
It is both anonymous and not anonymous. It's not anonymous in that it's possible to see exactly which wallet has owned every bitcoin that has ever been mined. It's possible to see exactly which coins any wallet has ever owned. And it's possible to see both parties in every transaction.
But it's anonymous in that the system requires no personal information to be associated with a wallet. People do make a public association this information when they use wallets hosted by bitcoin exchanges, but the owner of the wallet is not referred to whatsoever by the wallet. It's impossible to take a wallet ID and extract information on the owner, as there is none contained. Someone can have a wallet without having ever connected to the internet.
Strangerland
Republican logic: Trump wasn't even responsible for his own actions.
Also Republican logic: Biden is responsible for everyone's actions.