Even the Justice Department was able to regain $2.3 million worth of bitcoin (BTC-USD) extorted in Colonial Pipeline, implying that electronic money might not always be the ideal tool for offenders.
“It is not intuitive to lots of individuals, but it is something that the people is learning more,” Hunter Horsley, cofounder and CEO to get Bitwise Asset Management, stated concerning the upswing in retrieval of stolen cryptocurrency, such within their bitcoin ransom paid by Colonial Pipeline into cyberhackers.
To put it differently, he explained,”Bitcoin is awful for offense.”
Talking to Yahoo Finance Live this past week, Horsley directed to information in U.S. cybersecurity investigation company Chainalysis, which reveals a downward trend in the usage of cryptocurrencies from cybercriminals.
“In actuality, between 2019 and 2020, the incidence of crypto usage in these situations is down about 80 percent,” he explained. “So I believe that criminals are becoming more intelligent that crypto is a fairly inadequate tool for these, as well as Colonial we found that at total force.”
In previous decades, cryptocurrency theft was ballooning. At the first half 2018, CipherTrace, a company that assists financial institutions and cryptocurrency markets to fight money laundering, reported $761 million value of cryptocurrency has been stolen out of trades, representing a 300% growth year over year.
‘Law enforcement is bolstering their skills’
Fast forward to 2021 and the scene is shifting, Pamela Clegg, VP of Financial Investigations and Education in CipherTrace, informed Yahoo Finance. However, she said, maybe not each crypto trade is every bit as transparent.
“law enforcement has been simplifying their investigative abilities, and that’s quite apparent from studying the FBI agent’s affidavit filed with the District Court to get the search warrant,” Clegg said.
The hack Colonial Pipeline past month cut off gas supplies across the East Coast, resulting in panic buying and cost surges. Testifying before Congress this week,” Colonial CEO Joseph Blount stated spending the $4.4 million in ransom has been the toughest choice he had made in his profession.