Sunday, February 5, 2023

Bitcoin Value Slumps 8% After US Recovers Colonial’s Fund Paid In Ransomware

Bitcoin suffers a loss of 8 percent in the past 24 hours. The exact reason for this recent plunge is not known to anyone, however, it is being linked to the reports of US officials recovering a portion of ransom, paid in Bitcoin, from the hackers in the Colonial Pipeline hack. 

The US-based fuel pipeline system popularly known as Colonial Pipeline provides its services in the Southeastern part of the United States.

On May 07, the hackers attacked the company’s server and compromised its billing system. However, as soon as Colonial got to know that its system has been compromised, the company seized its operation, which resulted in fuel shortages throughout the region. 

As per the report published by Bloomberg, in order to get back its system’s authorization, Colonial paid 75 Bitcoin as ransom to the hackers, whose value was around $4.4 million at that time.

Bitcoin Fall

On June 07, just a month after the ransomware attack happened, the Department of Justice (DoJ) stated that the US authority has been able to recover $2.3 million of funds paid to the hacker.

It was reported earlier that the hacker’s, who attacked the Colonial Pipelines, Bitcoin wallet was also compromised, but this was not true. 

According to an affidavit submitted by the Federal Bureau of Investigation (FBI), the US authorities were able to track the Bitcoin transaction using a block explorer. During their investigation, the US officials found that one of the specific addresses on the network has 63.7 Bitcoin. After the authorities found out that it was the hacker’s account, they took over the private key of the address. 

It is to be noted that in order to process a Bitcoin transaction the user would need a private as well as a public key. 

The hacker attacked the Colonial Pipelines server a month ago, but as the market is coming down, it appears the incident took place, recently. Presently, Bitcoin is being traded at around $33,200.  

Along with it, the price of other cryptocurrencies in the market has fallen down.

Ethereum drop

In the past 24 hours, Ethereum came down by 10.3 percent, Dogecoin by 13.3 percent and Solana has lost a whopping 18.7 percent of its value.

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Bitcoin (BTC) $ 23,358.26
Ethereum (ETH) $ 1,662.75
Tether (USDT) $ 1.00
BNB (BNB) $ 329.83
USD Coin (USDC) $ 1.00
XRP (XRP) $ 0.409877
Binance USD (BUSD) $ 1.00
Cardano (ADA) $ 0.3975
Dogecoin (DOGE) $ 0.094973
Polygon (MATIC) $ 1.25