Ransomware Attacks and the Impact on Bitcoin's Legality

[Astronuc]

Colonial Pipeline didn't tell CISA about ransomware incident, highlighting questions about information sharing
https://www.cyberscoop.com/colonial-pipeline-senate-homeland-solarwinds/

olonial Pipeline didn’t notify the Homeland Security Department’s Cybersecurity and Infrastructure Security Agency of its ransomware incident, and CISA still didn’t have technical details about the attack as of Tuesday morning, the agency’s top official told senators.

Acting director Brandon Wales also said he didn’t think Colonial would have reached out to CISA if the FBI hadn’t alerted his agency, he said in testimony before the Homeland Security and Governmental Affairs Committee.

 

[Vanadium 50]

Never heard of CISA.

They called the feds. Is the problem that they didn't call the right feds? FBI sounds like the right place. DOE? (Or DoE,,,never can seem to get them straight). It's energy, after all. The attack came from overseas - doesn't that make it State's business? Or maybe Defense?

The US government has set up an alphabet soup of agencies with unclear and overlapping responsibilities. It seems a bit unfair to expect the citizens to sort this all out on their own.

 

[Rive]

It seems a bit unfair to expect the citizens to sort this all out on their own.

But that's a company. And (I think) not really a small one.
I would expect them having some kind of guideline about major IT troubles?

 

[Astronuc]

Various news agencies report that Department of Justice (DOJ) has recovered 64 of 75 bitcoins used for ransom. They amount to about $2.3 million. The $-value dropped after the seizure.
https://finance.yahoo.com/news/u-recovers-2-3-million-190713240.html

 

[russ_watters]

The $-value dropped after the seizure.

That's an interesting commentary on the underlying value of Bitcoin.

I wonder if Colonial is going to get the money back.

 

[Astronuc]

That's an interesting commentary on the underlying value of Bitcoin.

Bitcoin has been decrease in $US for some time. On Saturday, it was about $37800. On Monday morning, it hovered around $36 - $36.5k, then about $35.6k at 8pm EDT during Monday evening, and down to ~$34k by 10 pm. Since then the price has fluctuated between $31.4 and $33.8k. I don't think the Colonial ransom had much to do with it, but one would have to look at when they paid to see if there was a price spike, and what was going on yesterday when the DOJ announced the seizure of the Bitcoin ransom from the hacker's wallet.

One can only speculate on how much Colonial will recover. It would seem a drop in the bucket for them.

 

[russ_watters]

I don't think the Colonial ransom had much to do with it, but one would have to look at when they paid to see if there was a price spike, and what was going on yesterday when the DOJ announced the seizure of the Bitcoin ransom from the hacker's wallet.

I do agree; bitcoin can fluctuate 10% while you go get another cup of coffee, and it doesn't necessarily mean anything. We'll see if there is a more real/significant impact.

The article is making the commentary that since Bitcoin's value is heavily based on its utility as pre-laundered dirty money, law enforcement action that overcomes that attribute lessens its value. I would tend to agree. Even worse, the FBI now has the Bitcoin. So not only can law enforcement trace the money, they can seize it. And what if Colonial doesn't get it back? If that becomes a normal thing, I think it is a huge problem for Bitcoin moving forward.

I've been surprised by Bitcoin's resilience (though not its volatility) for several years. I'm surprised the Treasury Department is allowing Bitcoin ATMs to be set up. I think Bitcoin is clearly illegal and its viability thus far has been based primarily on the government not taking it seriously enough to bother shutting it down. This action gives a vibe that the government may be paying more attention.

 

[Leo Liu]

I don't get why the attackers didn't use XMR which ensures a higher level of anonymity instead. Now news reports that the bitcoins have been retrieved by FBI through accessing the private key. I wonder how they did it.

 

[Vanadium 50]

I think Bitcoin is clearly illegal

Breaking which law exactly?

I do agree that its value to the criminal underworld is lessened if they can be seized by a major world government.