On June 7, the United States Justice Department and the Federal Bureau of Investigation (FBI) announced the “recovery” of 63.70 bitcoin from funds from Colonial Pipeline sent to hackers. There are several inconsistencies in the official story and federal investigators did not disclose how the FBI was able to seize the Darkside gang’s private keys.
Darkside ransomware gang story filled with anomalies and an obscure bitcoin key capture
The cryptocurrency space is discussing the recent law enforcement capture of 63.7 B T c Or $2.3 million worth of bitcoin at the time of the seizure. There are problems with the way the story has unfolded and people are doubting the official story. Bitcoin.com News Reported On Monday, the Justice Department and Deputy Attorney General Lisa Monaco revealed the story of how the seizure. Monaco elaborated that federal officials had “turned the tables on the darkside.”
But from the moment the story was broken by several mainstream media outlets, there were some discrepancies. The first was that the US government had advised Colonial Pipeline to meet ransomware demands or specifically asked the company to pay. If the government asked the business to pay the darkside it would be rebuttal Government’s attitude towards not paying ransomware hackers.
When CEO Called FBI He Said “FBI Has Darkside Experts Who Are CA Based” – Colonial Pipeline CEO
This is where the warrant was executed, did they just get the keys from the FBI office then lol
– Zr1Trader (@ZR1Trader) 8 June 2021
Another issue with the original story is when CNN originally Reported On the hack, the news outlet claimed that the oil company did not intend to pay the ransom. According to bloomberg, Shortly after, Colonial Pipeline paid nearly $5 million to ransomware gang Darkside.
In addition to two conflicting elements in both the CNN and Bloomberg stories, the articles also noted differences with the digital currency used. CNN originally reported that payments were sought to be made in “bitcoin,” while Bloomberg wrote to Darkside for a “difficult-to-trace” cryptocurrency. CNN’s article was updated after Bloomberg’s article was published to reflect the same narrative.
Then there’s the fact that bitcoin is impossible to crack (B T c) key without forcing the owner to reveal the private key. This is an ongoing topic on Twitter, as the crypto community discusses the situation with how an FBI agent obtained the private key. story affidavit filed June 7, 2021 describes how law enforcement took advantage of “blockchain explorers” to locate coins. But apart from that the affidavit is extremely vague and has a lot of amendments.
But how did they get the private key? Looks sketchy.
“FBI Seizes Control of Darkside B T c By gaining access to the central account… they were able to access the private key for one of these B T c It was unclear how the keys were compromised.”#colonial pipeline $BTC #FUD
— Squanchy (@C_OneThreeSeven) 8 June 2021
A report published yesterday on Bitcoin.com News suggests that officials from Blockchain Intelligence Group Intelligence (CSE: BIGG) highlights that law enforcement relied on “training and analysis” [that] Requires advanced tools and learning” Other blockchain monitoring companies have recently followed the ransomware coins as well as Elliptic. wrote About following Darkside Funds.
Between all the comments from Monaco so far, the Justice Department, FBI agent affidavits, and comments from some of the blockchain analysis teams, there is no point that ties deeply into how the FBI now gained ownership of the private keys.
Crypto community searches for possible clues
A report published by NPR reveals three possible scenarios. One possibility, NPR’s Vanessa Romo notes, is that perhaps federal agents were tipped off by an insider in the Darkside gang. The second theory is that the Darkside was “reckless” or that a member of the gang slipped away by releasing the key information.
Another theory could be that the FBI was able to rock a third party or possibly a cryptocurrency exchange. some people openly attacked Bitcoin’s “major selling point” was considered “out of reach of the government”.
There seems to be something strange about this whole matter. was B T c Sent to Exchange?
— Rick McCracken DIGI (@RichardMcCrackn) 8 June 2021
Lawyer Jake Chervinsky who frequently comments regularly on the blockchain and crypto space said: “We Don’t Know Exactly How the FBI Seized Colonial Pipeline Ransom” [and] They are not telling us. The warrant application shows that they have found the private key. Maybe from Darkside server seizure? There is no suggestion that an exchange or custodian was involved, but it is possible.”
Freelance journalist Jordan Schachtel gave his opinion about the situation on Twitter and Told His 123,000 followers claimed that, despite the claims he made, “the FBI did not ‘hack back’ the bitcoin wallet. It is mathematically impossible to hack private keys.” sketchtail Continuous:
[There is] No evidence of Russian involvement. All of this was completely avoidable if the Colonial had basic security measures in place. I think it’s fair to say that hacking the private key is currently impossible. Improbable is not a strong enough language to demonstrate how impossible it is to maintain a private key through computing power. Quantum is still a theoretical threat.
Schachtel and many more discovered Warrant which indicates that the US government obtained the key by taking advantage of the warrant. The journalist said it was probably an exchange located in San Francisco or a database server located in the state of California.
Coinbase CSO Philippe Martin said he saw several allegations against Coinbase pointing to “involvement” in the seizure. Martin and Coinbase Insist on that “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.”
Election Attorney, Litigator, and Bitcoin Practice Group Leader, Brian Jacott, repeated The fact is that bitcoin private keys cannot be “hacked”.
“For those of you who think that the US has not cracked SHA-256 and correctly guessed the private keys of the Colonial Pipeline hackers,” Jacout said. “Here’s a fun fact: the size of bitcoin’s private key space is 10^77. For comparison, the amount of *atoms* in the observable universe is 10^80.”
A Twitter account called “Chathulu” mentioned This may be a false flag and said:
So either the FBI were the hackers of the Colonial Pipeline or they don’t need to get anyone’s keys B T c. Hilarious laugh. I don’t think too much thought has gone into creating this false flag.
“The FBI was either given the private keys or they stole them,” another man dubbed King Crypto commented on Monday. Currently, as the story is trending across the web, there are a lot of doubts on the official story told by the US government.
Do you believe the federal government’s official story about the Colonial Pipeline bitcoin ransomware case? Let us know what you think about this topic in the comment section below.
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