Recovery Seed Backup Devices

Colonial Pipeline - Way to go FEDS!!!

Proud of the FBI

I am very proud to be an American today.  Our Feds were able to stop hackers and recover the ransom funds from a horrible attack on our vital infratructure.  Finally, the US is using the tools at its disposal to take down these crime syndicates and foreign states that keep fucking with us.

The Colonial Pipeline hack and following FBI recovery didn't mean anything for Bitcoin.  Most people already know that Bitcoin is public.  In its most basic form it is a shared public financial ledger.  Countries use a company called Chainalysis to analyze the blockchain and make very accurate predictions on who is doing what and with how much.

For instance, if they are watching a wallet and see that it sends money to an account on Binance or possibly sends it to a person who had an account on Binance and transferred the money into a wallet.  In general, computers can figure out about 98% of blockchain transactions.

According the article I read, because it was paid in Bitcoin, it was easy to track while if it was cash, they wouldn't have been able to track it so easily.

The other thing people think is a big deal is that the FBI got the money back.  This doesn't mean that Bitcoin failed.  This means that the hackers had poor security.  The Bitcoin wallet algorithm is still impossible to hack or reverse engineer.  The thieves were most likely using a hot wallet and got hacked by the FBI.  I am sure the Feds have some pretty awesome computer tech.  I am glad they used it and used it for good.  I am not in favor of using Bitcoin or cryptocurrency for anything illegal or immoral.  I am glad the feds were able to catch the crime ring and that American infrastructure is a little bit safer.

If the hackers would have used cold storage, we would have a very different ending to this store.  The Feds would have needed to physically take the storage device and force the user to divulge the code. 

Why didn't they demand Monero?

Leave a comment

Please note, comments must be approved before they are published