COLONIAL PIPELINE PAID THE RANSOM

Colonial Pipeline was hit last week (May 7, 2021) with ransomware. The company evidently did not have security in place. Tape has been the corporates choice to protect against calamity. Tapes are widely used in the S&P 500 for that very reason. Instead Colonial simply paid the Bitcoins and they are now slowly returning to business.

The FBI believed a Russian criminal operation was involved. The group was called Darkside which is likely a codename for the criminals.

  • Colonial Pipeline paid a ransom to hackers after the company fell victim to a sweeping cyberattack,
  • A U.S. official, who spoke on the condition of anonymity, confirmed this
  • It was not immediately clear when the transaction took place.

Clearly this is bad news as it proves that Bitcoin is a tool for larceny.

Colonial has been reported to have spent $5 million to the cyber criminals. A media report that the criminal group has disbanded is more likely due to law enforcement actions.

The four cybercriminal groups — Twisted Spider, Viking Spider, Wizard Spider, and the Lockbit Gang — announced at different times throughout summer 2020 that they would be working together but gave few other details. By November, when Twisted Spider — also known as the Maze group — closed down, it denied there had ever been a cartel. Misinformation is pervasive when tracking criminal enterprises.

A new variant of WannaCry forced Taiwan Semiconductor Manufacturing Company (TSMC) to temporarily shut down several of its chip-fabrication factories in August 2018. The virus spread to 10,000 machines in TSMC’s most advanced facilities. The WannaCry malware has been seen in several other attacks.