The Colonial Pipeline x Bitcoin Frenzy

The Colonial Pipeline x Bitcoin Frenzy

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Published Date
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Quick Insights for Colonial Pipeline
  1. They supply 45% of Fuel to the east coast of US
  1. The recent Hike in Fuel prices was because the supply was cut by Colonial Pipeline
  1. Their whole purpose is to transport gasoline and petroleum thought the country
  1. Colonial Pipeline: $421 Million Valuation/Net Income

How it all started:

Colonial Pipeline gets an anonymous email/popup created by DarkSide, DarkSide was hired by an Unknown company (Affiliate so-called) to send a Ransom message/warning to Colonial Pipeline
(PS: Use my Affiliate link to get a 15% Discount with DarkSide: DarkSide.com/r/Krish)
So the Accounting sector of Colonial Pipeline received a fishing email on May 7th asking them to upgrade their software for security reasons, and then they threatened them as usually, they do. They were asked to pay 75BTC or have all their pipeline network cracked down which could only send the company to zero!
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So the CEO of Colonial Pipeline decided to pay 75BTC ~ $4.4Million to the Unknown company (Who hired DarkSide to setup the ransom software)
The Company also shut down 5500-Miles of its pipeline infrastructure thinking that their security was extremely compromised and for their safety, they should not take any risk and shut it all down. ~This is the reason why the attack looked very scary
Also, the reason for Gas prices on the east coast blew up as Colonial Pipeline shut down their supply which accounts for 45% of the gas supply.

Then FBI Stepped in:

FBI was able to track down all the transfers of BTC from the Colonial Pipeline’s wallet to Unknown Company’s wallet and successfully able to recover 63.7BTC and the remaining 15%/11.3BTC was given to DarkSide, who charges 15% fees to all their clients for creating the Ransomware software.
So the 11.3BTC was never recovered because Darkside being a professional group of hackers, were successfully able to get away with it.
But the Unknown company who was not much experienced with Technologies and Blockchain was caught easily by FBI.
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When they might have tried to bring the 63.7 BTC to Exchange wallet like Coinbase.com, Binance.US, Gemini they were caught and those exchanges might have agreed to work with the FBI and give the details of the unknown company’s Wallet or they somehow figured the Private key and recovered the coins.
~And this felt like Bitcoin was hacked but it was just the precise use of Blockchain ledger technology which helped FBI track it down so easily.
After this Incident DarkSide published this went Lowkey:
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Thanks Guys those are all my insights regarding the Colonial Pipeline X BTC Hack frenzy