Cryptocurrency News

Coinbase Says It Wasn’t Involved In DOJ’s Bitcoin Ransom Seizure

Coinbase’s chief security officer has denied the suggestion that the US crypto exchange was involved in any seizure of crypto assets related to the recent Colonial Pipeline ransomware attack.

CSO Philippe Martin took to Twitter on June 8 to explain the firm’s involvement, or lack thereof, with a Justice Department warrant for the seizure of bitcoins.

“Coinbase was not the target of the warrant and did not receive the ransom or any part of the ransom at any time. We also have no evidence that the funds passed through the Coinbase account/wallet.”

official seizure story, in which Government Officials Seize 63.7 BTCIt was worth about $2.3 million at the time, with several irregularities. Federal investigators claimed to have obtained private keys to the Darkside group, but did not disclose how the FBI was able to commandeer them.

According to Affidavit, the private key to the subject’s address was held by the FBI in the Northern District of California. It established a relationship with Coinbase, which has servers in the region as many Twitter users. Told. Martin denied these claims, saying:

“I also read that because the seizure warrant is a designated asset in the Northern District of California, it had to be targeted at Coinbase. No. This likely means that the private key is located at one of several Northern California FBI field offices “

He added that due to the storage mechanism of the exchange which uses a pooled hot wallet, it “wouldn’t make a ton of sense” to hand over a specific private key.

Questioning how investigators acquired the private keys, they speculated that it was the work of “some good ol’ police to locate the target servers,” followed by Mutual Legal Assistance Treaty (MLAT) requests and/or access. There was some political pressure to obtain.

Concerns arose over the ability of authorities to access cryptographic keys, which played a role in yesterday’s market crash. However, authorities have a variety of innovative ways to access personal information. same day, reports Details emerged of a fake encrypted communications app used by criminals that was secretly operated by the FBI to secretly message, collect private information and monitor large-scale criminal activity.

In News bulletin On June 8, the founder of Quantum Economics and eToro. Former Senior Market Analyst Mati GreenspanSaid that the recovered ransom was actually faster for bitcoin as many expected US politicians to use crypto as a scapegoat for the attack and some would implement it. heavy rules.

“Instead, they were linked to what we already knew, that it is easier for authorities to catch criminals using crypto than anything else.”

Greenspan said that “the only valid explanation for the price drop is that the markets are random, especially in the short term.” At the time of writing, BTC is trading down 2.2% over the past 24 hours at $33,000, down more than 10% since the start of the week.

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