US Ransomware Attacks Are Bad News For Bitcoin
Last Updated on 8 June 2021 by CryptoTips.eu
If you follow US news, you’ll know that the Biden administration is plagued by a spate of ransomware attacks. This morning, the Department of Justice was glad to announce that they’ve recuperated some of the Bitcoins paid to hackers.
Breaking: US investigators have recovered millions of dollars in cryptocurrency paid in ransom to hackers whose attack prompted the shutdown of Colonial Pipeline. DOJ today is expected to announce details of the operation led by the FBI. via @evanperez https://t.co/tgYx9Xui3w
— Natasha Bertrand (@NatashaBertrand) June 7, 2021
This is not the end of the problem though. In fact, just last weekend the world’s largest meat packer was targeted by cybercriminals. Back in May, the largest fuel pipeline in the US was attacked, stoking fears over supply disruptions of food and fuel. Each time, the criminals are believed to be from Russia. Each time, they demand payment in Bitcoin or another cryptocurrency, which ensures that the world of crypto is getting a lot of bad press in the US lately.
The Wall Street Journal ran a headline this weekend that said: US probes cryptocurrency role in recent ransomware hacks. Couldn’t be more clear of course.
Stop Ransomware Attacks Like JBS, Colonial Pipeline by Banning Crypto Ransom Payments https://t.co/blbD0W0SN2
— Ian Cook (@Secnewsbytes) June 4, 2021
Meanwhile White House spokeswoman Karine Jean-Pierre claimed that tackling ransomware is a top priority for the Biden administration. They will expand the FBI’s capability to better track crypto transactions relating to ransomware. This White House statement comes weeks after the attack on the Colonial Pipeline and the meat giant JBS.
Expect more "X millions paid in #Bitcoin to hackers in ransomware attack" headlines soon. This JBS hack is big.
— Sicarious (@Sicarious_) June 2, 2021
I'm slightly concerned on the effect these significant ransomware hits will have on crypto's image in the public sphere. https://t.co/gHrwn5pB75
According to the White House, the efforts of the Administration would focus on several key areas: Monitoring the infrastructure and ransomware actors in close collaboration with the private sector, building an international coalition to hold countries that harbor ransomware actors to account and developing an analytics tool to trace crypto transactions, to identify and pursue any illegal activities.
Hackers and their hunters
The attack on Colonial Pipeline last month resulted in fuel shortages in several states. In addition, the attack on JBS nearly shut down its factories, with the risk of meat shortages and meat prices rising in the Northern Hemisphere.
To address this, US federal agencies are already working with blockchain analytics companies, like Chainalysis and CipherTrace, to fight money laundering, terrorist financing, and other criminal activities.
Todays WSJ. Whether oil pipeline or JBS Meats, The US Govt will continue to vilify crypto to prepare the public for them to usher in regulations to save the day. #crypto #bitcoin #xrp pic.twitter.com/Cnejx6FSJU
— Tony (@tony_xrpz) June 4, 2021
CipherTrace develops, on behalf of the Ministry of Homeland Security, methods of tracing Monero. The anonymity that cryptocoin Monero comes with makes it one of the favorite cryptos of hackers and criminals in general.
Computer giant Acer also fell victim to ransomware attacks in the first quarter of 2021. Hackers demanded a ransom of more than $50 million. Not a good trend.