The Justice Department recovered $2.3 million in bitcoin paid by Colonial Pipeline hackers to resolve a ransomware attack.
Colonial pipeline paid a ransom worth roughly $4.4 million in bitcoin to Russia based hacking group known as Darkside. Darkside used malicious software to hold the company hostage. Deputy Attorny General Lisa Monaco said investigators had seized 63.7 bitcoins, now valued at about US$2.3 million.
U.S Seizes $2.3M In Bitcoin Paid To Colonial Pipeline HackersThe Department of Justice has “found and recaptured majority” of Ransom paid by colonial, said Monaco. Darkside operates as a “ransomware as a service(Raas). Operating model means its hackers develop and market ransomware hacking tools.
Justice Department officials said investigators tracked bitcoin on cryptocurrency public ledger and identified a virtual currency account known as “Wallet” utilized by Darkside. The fund was seized as part of a ransomware task force created by the DOJ.
The affidavit says the FBI was in possession of a private key to unlock a bitcoin wallet having most of the funds. Though it was unclear how the FBI gained access to the key.
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“The sophisticated use of technology to hold businesses and even whole cities hostage for profit is a decidedly 21st-century challenge, but the old adage of following the money still applies,” Monaco said.
Ransomware attacks have been on the rise recently witeveral high profiles and critical infrastructure firms falling victim to a cyberattack.
