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Bitcoin question (How did FBI recover some pipeline ransom)

Posted: Sat Jan 08, 2022 8:19 am
by I Shrugged
Remember when the Colonial Pipeline or some other important company paid a ransom in Bitcoin, and soon it was announced that the FBI or some other agency got a lot of it back?

How did they do that? Isn’t Bitcoin impenetrable?

Re: Bitcoin question

Posted: Sat Jan 08, 2022 11:30 pm
by boglerdude
https://old.reddit.com/r/BitcoinBeginne ... he_fbi_do/

Crypto's best use case is still crime.

Re: Bitcoin question (How did FBI recover some pipeline ransom)

Posted: Mon Jan 10, 2022 5:34 pm
by var
I Shrugged wrote:
Sat Jan 08, 2022 8:19 am
Remember when the Colonial Pipeline or some other important company paid a ransom in Bitcoin, and soon it was announced that the FBI or some other agency got a lot of it back?

How did they do that? Isn’t Bitcoin impenetrable?
This is mis-information all BTC transactions are visible to anyone on the blockchain. The attackers should have taken the BTC and exchanged it to monero or some other tokens on various DEXs.

THE BTC community will usually band together and once the address is known will lockout the wallet address so you can never really cash out the stolen bitcoin.

Re: Bitcoin question (How did FBI recover some pipeline ransom)

Posted: Mon Jan 10, 2022 6:09 pm
by Xan
var wrote:
Mon Jan 10, 2022 5:34 pm
This is mis-information all BTC transactions are visible to anyone on the blockchain.
I make this point every time somebody extols the privacy benefits of Bitcoin. Literally all your transactions are recorded permanently, publicly, and for all time. That's the opposite of "privacy" in every way.
var wrote:
Mon Jan 10, 2022 5:34 pm
THE BTC community will usually band together and once the address is known will lockout the wallet address so you can never really cash out the stolen bitcoin.
Wait, what? Bitcoins aren't fungible? Some cabal (er, "community") could decree that my ersatz money is now worthless?

Re: Bitcoin question (How did FBI recover some pipeline ransom)

Posted: Mon Jan 10, 2022 6:38 pm
by I Shrugged
Actually the DOJ got the private key to the wallet, during a raid on some server.

Re: Bitcoin question (How did FBI recover some pipeline ransom)

Posted: Fri Jan 14, 2022 3:52 am
by seajay
Xan wrote:
Mon Jan 10, 2022 6:09 pm
var wrote:
Mon Jan 10, 2022 5:34 pm
This is mis-information all BTC transactions are visible to anyone on the blockchain.
I make this point every time somebody extols the privacy benefits of Bitcoin. Literally all your transactions are recorded permanently, publicly, and for all time. That's the opposite of "privacy" in every way.
Neither do bitcoins reside within wallets, they're just recorded in the blockchain. Proliferation of loggers to capture private keys is big-business and knowing the private key is ownership of the associated Btc's. Hacking a central Windows/Linux/whatever repository patch that installs a private key logger is a low risk high reward attack. The only really safe system is one that has had the code/system upon which is it based fully audited and verified as clean, that has never been attached to the internet and that is locked away in a secure vault. Conflicting with that is a system that has/is connected to the internet is generally required in order to generate keys/make transactions.

Many would find securing a physical piece of gold a lot easier and more obvious than that of securing Btc ownership. State sponsored cyber warfare attacks that redirect large amounts of bitcoins could be like having the ability to empty Fort Knox at the press of a button and win the war relatively quickly. In contrast with physical gold you actually have to invade and secure Fort Knox or wherever the gold might have been moved.

Re: Bitcoin question (How did FBI recover some pipeline ransom)

Posted: Sun Jan 16, 2022 7:42 pm
by var
I Shrugged wrote:
Mon Jan 10, 2022 6:38 pm
Actually the DOJ got the private key to the wallet, during a raid on some server.
True. the hackers left the key on the cloud server that they used to attack. Sloppy.

Just because it is written on the blockchain. You still need keys to access the funds.

I used to be a gold bug. However, upon further detailed research is just far easier to secure and own BTC if you do it properly.

The slippage trading Gold Eagle is a lot more than trading BTC.