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Since it broke into the mainstream Bitcoin and crypto overall has really done as much as they can to clean up the image of being only used by criminals for illicit goods and services. Sadly it is still something that the industry has to struggle with but significant improvements have been made. Last year it became evident to the United States public once the Colonial Pipeline was hacked and held hostage for Bitcoin. The shutdown of this pipeline resulted in extreme situations and issues for the eastern part of the United States and led to regulations being passed and signed into law to better address ransomware attacks and who/how they would be handled. Ultimately Colonial paid the ransom in Bitcoin regained access and patched the hole in their security that was exploited.
Unlike other times or ways that ransom was paid, these hackers left a heck of a trail. This wasn't a trail like a clue here or there rather it was a scorched earth trail leading right to where the Bitcoin went. The reason that this trail existed is the reason that many people find cryptocurrencies attractive and that is the blockchain. No other payment or asset transfer process is as transparent as the open ledger. From this, anyone can follow the flow of assets or money.
When the hackers used Bitcoin then they left a trail that allowed authorities to follow the trail right to where the Bitcoin went. Amazingly the hackers even stored the Bitcoin on a wallet whose servers were mostly located in the United States. This allowed authorities to quickly and easily seize servers with the wallet information effectively taking over the wallet and recovering the Bitcoin within. All of this was done because of the open LEDGER that allowed the trial to be followed and served as a fantastic public example of what good can come out of systems that cryptocurrencies have.
It should come as no surprise then to see that the FBI has continued to explore the hacks that were paid in Bitcoin and other cryptos where the funds have not been recovered. Well, surprise last week the FBI was able to recover crypto assets that were used to pay off a ransomware attack on a Kansas hospital system in 2021. The amount recovered was $500,000 which while it is not an eye-popping sum it's a huge win for showing that hey this isn't like cash where once it's gone it's gone there is a trail you just need to have people follow it.
Successfully recovering funds even months after the fact is a win and something that I believe will get regulators' and politicians' attention and help cast a new much more appropriate light on the industry as a whole. I would also expect to see further instances of recovered crypto funds from different hacking groups over the coming months as this is addressed and funds are recovered. Recovering these funds gives the crypto world a better footing to stand on when crypto is talked down about as it is much easier to track than cash which can only be traced via the bill serial number. Hopefully, this spurs Members of Congress and the crypto naysayers to educate themselves more on the topic.
Please know I am not a financial advisor and make sure you do your own research! If you enjoyed this article and would like to further support me below are a few referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_
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