Bitcoin ransom recovery shows cryptocurrencies and privacy.

This week’s revelation Federal authorities have recovered most of Bitcoin What was paid in recent Colonial Pipeline ransomware attacks revealed a fundamental misconception about cryptocurrencies: they are not as hard to track as cybercriminals think.

This allows law enforcement agencies to take advantage of the same characteristics that make cryptocurrencies attractive to cybercriminals (the ability to send money instantly without the permission of a bank) to fund criminals at the speed of the Internet. Because it can be tracked and seized. Reported by Nicole Pear Rohto, Elling Riffis and Katie Benner of The New York Times.

Bitcoin can also be tracked:

  • Digital currencies can be created, moved, and stored outside the authority of governments and financial institutions, but each payment is recorded in a permanent fixed ledger called. Blockchain..

  • This means that all Bitcoin transactions are open to the public. The Bitcoin ledger can be viewed by anyone connected to the blockchain.

On Monday, the Justice Department said it tracked $ 63.7 out of 75 Bitcoin (about $ 2.3 million out of $ 4.3 million). Colonial pipeline Ransomware attack shuts down company computer system, fuel shortage Soaring gasoline pricesSince then, authorities have refused to provide details on how accurately Bitcoin was recovered.

“This is digital bread crumbs,” said Catherine Haun, a former federal prosecutor and investor at venture capital firm Andreessen Horowitz. “There is a way law enforcement can follow pretty well.”

Given the public nature of ledgers, cryptocurrency experts said law enforcement had only to find a way to connect criminals to a digital wallet that stores Bitcoin.

Bitcoin ransom recovery shows cryptocurrencies and privacy.

Source link Bitcoin ransom recovery shows cryptocurrencies and privacy.

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