SECURITY

East Coast Pipeline Company Hacked! FBI Recovers 63.7 Bitcoins in Ransom, Triggering Panic of "Wallets Being Compromised"

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East Coast Pipeline Company Hacked! FBI Recovers 63.7 Bitcoins in Ransom, Triggering Panic of "Wallets Being Compromised"

In early May, the major U.S. fuel pipeline operator Colonial Pipeline was hacked by cybercriminals threatening to disrupt the energy supply and demanding ransom. Today, the U.S. Department of Justice announced that they have recovered 63.7 bitcoins in ransom, sparking fears in the cryptocurrency community of "wallet breach." What is the truth behind this?

US Department of Justice Announces Ransom Recovery

Deputy Attorney General Lisa Monaco stated that investigators have seized 63.7 bitcoins paid by Colonial Pipeline, currently valued at around $2.3 million. Colonial Pipeline had previously disclosed paying nearly $5 million to the hackers.

According to reports, the FBI possesses a private key that allows them to recover most of the ransom. However, it is currently unclear how the FBI obtained this private key.

FBI Capable of Cracking Wallet? Rumors debunked

Following this news, there have been various panic-inducing comments. For instance, a Chinese KOL believes that the FBI has cracked the Russian hackers' wallet private key, which could lead to a Bitcoin crisis. Of course, many have replied below: "Nonsense."

Co-founder of Blockstream, Adam Back, explained:

Bitcoin has not been cracked. No Bitcoin wallet has been hacked, and it's even impossible. Malicious hackers used rented cloud servers. The FBI simply obtained control through a subpoena to retrieve the bitcoins. According to a news report dated May 14, the DarkSide ransomware gang's administrator announced that servers were seized, and funds were transferred to an unknown account.

Another journalist provided a more detailed account, stating that the FBI obtained access to facilities in California through a subpoena, rather than cracking the wallet through innovative technology.