FBI Claims Has Recovered Ransom From the Colonial Pipeline Hack. Great! That Means It Wasn’t the Russians Who Dunnit

After all the shrieking about a Russian attack on 'critical infrastructure,' the funds were found in a US-based custodial account

Russian super-hackers would have been in control of their own BitCoin address instead of leaving funds with a US-based 3rd party for weeks

Top Department of Justice officials claimed to strike a major blow against the culprits of the Colonial Pipeline cyber attack Monday, announcing that they had seized almost all of the funds paid to the affiliate group responsible for contracting the DarkSide ransomware attack.

Colonial Pipeline suffered a ransomware attack in early May and responded by preemptively shutting down the pipeline’s entire operations for some time, forcing a temporary but major energy crisis throughout the Southeastern United States. In order for the computers that maintained the pipeline to get back to full operation, Colonial agreed to pay a ransom in the form of 75 bitcoin, which was worth about $5 million at the time.

Now, here’s where things get weird:

In their triumphant statements this morning, the DOJ claimed to have seized the funds from the group that reportedly paid DarkSide for their Ransomware as a Service (RaaS) attack on Colonial:

“There is no place beyond the reach of the FBI to conceal illicit funds that will prevent us from imposing risk and consequences upon malicious cyber actors,” FBI Deputy Director Paul Abbate said in a statement. “We will continue to use all of our available resources and leverage our domestic and international partnerships to disrupt ransomware attacks and protect our private sector partners and the American public.”

Now, the DOJ does appear to have secured the funds, but not in the fashion that it is being advertised by federal officials and widely reported in the corporate press.

Bitcoin is secured through a currently unbreakable cryptographic formula known as a Elliptic Curve Digital Signature Algorithm. You can safely rule out the possibility that the feds broke this form of encryption and were able to pull off this computing power miracle, which is only theoretically possible through the use of quantum computing, a technology that is still very much a work in progress. The feds did not “hack” a bitcoin wallet in this manner, though they certainly seemed happy to give off that impression, as it sows doubt about the security of the bitcoin network.

The DOJ has historically been extremely hostile to bitcoin, labeling it as a preferred monetary system for cyber criminals, despite bitcoin transactions being publicly available to anyone with access to the internet.

A DOJ warrant from Monday morning gives us much more detail about how the government actually secured the bitcoin funds. They did so by obtaining a warrant on a bitcoin wallet or exchange that had servers in Northern California. Yes, you read that correctly. The entity responsible for the ransomware attack did not in fact have custody over their bitcoin. Instead, they were using a custodian for their funds with servers in the United States.

Using a custodian for your funds instead of maintaining possession of them is a very basic error, especially for an allegedly sophisticated hacking gang.

Given that bitcoin transactions are publicly available, it was easy for the feds to track the funds transferred from Colonial to this outfit, as Colonial’s initial transfer to the bitcoin wallet is public information. All they had to do was “follow the money,” which strangely made its way into a U.S. based custodial address.

The latest events surrounding the Colonial Pipeline drama simply do not square with the narratives coming out of the Biden Administration and its stenographers in the corporate press. We were told this much-hyped hacking group of alleged Russians posed a serious threat to our entire critical infrastructure, yet in the same breath happened to have committed a laughably amateurish bitcoin custody faux pas that allowed for the feds to easily take back possession of the ransom funds.

I will refrain from getting conspiratorial about possible government involvement and leave that to the readers in the comments section. In my opinion, this ransomware attack was successful largely due to Colonial’s lack of basic security measures in place. Similar to the notorious DNC emails hack (with the same claimed Russian government culprits), where John Podesta’s password was literally the word password, the hackers succeeded because Colonial had no measures in place to protect themselves. Everything else in the timeline going back to early May seems blown way out of proportion.

Despite the claims made by some powerful people in D.C., there is no compelling evidence that this incident was some kind of Kremlin-directed operation to decimate America’s critical infrastructure.

In the end, the Russians and Bitcoin are not the antagonist actors in this story, though the DOJ seems more than happy to promulgate both of these narratives. Once the feds were able to identify a bitcoin “hot wallet” (as opposed to an offline bitcoin wallet that is controlled by the hackers themselves) was connected to online servers, it became a routine process to seize the funds through legal channels.

There’s also the possibility that the feds identified an individual or group in the affiliate organization responsible for contracting the ransomware attack due to some kind of sting operation. Once identified, the FBI may have proceeded to require these entities to send their funds into a bitcoin wallet in Northern California that is controlled by the FBI.

Anyway, the real issue here is how easily this could have all been avoided. It shows how horrifically poor our infrastructure is protected in this nation, to the point where a cheap ransomware attack by unnamed actors can result in a nationwide energy crisis. The story has nothing to do with U.S. adversaries and digital currencies, but of unbelievable incompetence and neglect on the part of Colonial and our overall security apparatus. It’s called *critical* infrastructure for a reason.

Source: The Dossier

The Market Ticker:

You won’t convince me that Putie-boy hacked Colonial (nor any Russian group associated with him) and had the funds sent to a US custodial account and then left them there instead of transferring it somewhere outside the US originally (BTC is global, after all) and then immediately moving it offline into a “hard” wallet where you would have to obtain the physical hardware.  Any “state-sponsored” entity would have done that within minutes of the transaction occurring.

  1. ken says

    Notice no arrests of the hackers. The only perps the fbi have caught over the last few decades have been idiots they set up.

    Like any other gov agency,,, I wouldn’t believe a word they say.

  2. Jim says

    Another absolutely bush-league attempt to incite Americans against Russia, regardless of how fellow Americans are screwed in the process!!! The entire episode was a rank insult to our intelligence, not to mention a crude kick in our groins, from the very first moment that “Russian-speaking” parties were blamed for being the hackers.

    Oh yeah!!! Like we’re really going to jump right in and believe those “unnamed intelligence sources”, who are probably named “Adam Schiff”, the very next time they try to implicate Russia… for anything!!!

    (I’m sincerely sorry for using the words “intelligence” and “Adam Schiff” in the same sentence!)

  3. Jerry Hood says

    ZioNazi USrael will soon receive an Investigative Report of 911…After 9+11 years as Vigessimal anniversary after 20 years of deep involvement of the Skull & Bones with their member imposed into the White House to oversee 911 attacks! 911 is not only an Emergency Number in USrael, but they have it on their ” galactic” flag! 9 rows+11 columns of stars, and 6+7 stripes…The Bonesmen used it in 911 crew members amounts in so called ” 4 hijacked planes”…AA11+UA175, both allegedly hitting the Twin Towers, had 9+11 crew members! And last two,AA77+UA93 had 6+7 crew members…
    9&11 “stars”( circlets in Mesoamerica) is seen on the Codex Mendoza, on the Aquarian Age Jar/ Pot/ Bowl,etc., with 9 ” circlets/ stars” on the outside edge of the Pot, with 11 ” circlets/ stars” inside, symbolising birth of new Anno Magnus and new cycle of life!
    911 is visible in Kremlin complex,9 ” onion” towered,octagonal buildings(9×8=72,precessional number) with 11 churches in whole complex! 911 is also in Beijing’s ” Forbidden City” divided by ” golden river” on eastern half with 9 pagodas and western side with 11 royal palaces…This is an astronomical numbers of galactic importance, in many ancient and modern monuments! It also has dual meaning and symbolising the galactic Womb!

    1. Jerry Hood says

      Bush Jr. was enthroned in Oval( vagina star gate symbol) Office as Bonesman to oversee it on 911 as ” smooth” job…Bonesman Rumsfeld headed Pentagon( another symbol of vagina star gate)…He told us of 3 billion dollars missing in Pentagon, going down the black hole…He oversaw USrael military in a case of need after 911 sacrificial attacks on the US goyim…They used numbers 7,8 and Ennead of 9,as 4+5, twice…These zionazi conmen used the same numbers in Apocaliptic and post-apocalyptic Grorgia Guidestones, built by the Bonesmen and not by the Rosicrucians as Wikipedia lies! This monument of DEATH was opened on March 22, 1980. March 22 is Skull& Bones SIGNATURE ON THIS MASONIC MONUMENT OF DEATH AND MURDER, because March 22= 322, Skull& Bones number of Vernal Equinox occuring in the Western hemisphere,measured by the Great Sphinx- a day later! From this event is measured also the new Anno Magnus! On the Skull& Bones symbol with number 322, is 4+5 carvings on the bones,looking like ” fingers”, as Ennead= number 9, and the upper jaw on the skull has 11 teeth= 9/11 signature!!!
      Our 11 year cycles of Sun- its solstice, aligned with Black hole ” photon” energies,located in the Swan constellation with 9 stars,where is located the Swan= Cygnus X1= black hole, known in the ancient world of priests-astronomers as Yama= the goddess of the dead!!!

      1. Jerry Hood says

        March 22= 322, and 3+2+2= 7. 1980= number 9, and number 8 is in the 8 world languages-the 10 masonic guidances for the next civilisation!
        The zionazis knocked down the Twin Towers= number 8( today 2 squared holes as insulting ” Memorial” to the victims) + WTC 7…The same conmen rebuilt that original 7 WTC Buildings as 4&5= Ennead of 9….Flight AA77 turned 270 ° degrees westwardly into Pentagon, between 4th+5th stairway to the heliport….270 is grmayria nsme value of YoSeR= Potter/ Creator known to us ass DJoSeR= Aquarian Age, the starting age of Anno Magnus! And 270 is also the name value of INRI, for the judeomasonry as : Ignited Nature Renew Itself= apocalypse by Fire….

        1. Jerry Hood says

          Bush Sr.( now in hell) was involved in JFK assassination on November 22,1963= summary number 7…RFK was gunned down on June 6,1968= summary number 9…Both were of Irish descendancy and in the ” Catholic” lodge….So is senile,Sleepy Joe Biden…Will the Bonesmen sacrify also this half dead man Biden as missing number 8???
          Only time will tell…

          1. Jerry Hood says

            911 was committed by the ZioNazis / ashkeNazis for Novus Ordo Seclorum in 2033, which is also the Great Jubilee Year from crucifixion of Christ by the jews, 2000years ago!!! And that year is also 100 years from the First USrael bankruptcy, by the jews= megabanksters! And Skull & Bones 200 year anniversary…

  4. yuri says

    FBI steals from CIA account…these incompetent fools couldn’t contrive a case against trump
    anyone that believes this fake news is dimmer than the senile vegetable prez installed by US ruling class

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