[ExI] colonial pipeline shutdown

Dylan Distasio interzone at gmail.com
Fri Jun 11 16:33:55 UTC 2021

>From what I have gathered in my interweb travels, these supposed hackers
were dumb enough to use Coinbase as their fiat off ramp.   I don't believe
for a minute that an actual private wallet was compromised unless they
somehow got access to the hackers' computer(s) and the hacker had been dumb
enough to store anything related to their secret key on the computer.   If
these coins had been put into cold storage in a hardware wallet and the
hackers did not keep a record of their recovery phrase digitally, the odds
of the FBI being able to hack it are essentially nil.

If it is true that the coins were on Coinbase while the hackers were trying
to convert them back into fiat in a bank account,  Coinbase may have turned
the funds over to the Feds.

Best practices in crypto is to keep only enough on a centralized exchange
to do what you need to and then either move it to a hardware wallet or bank
account.   At this point, the only thing a centralized exchange like
Coinbase is needed for is the on ramp / off ramp.

On Fri, Jun 11, 2021 at 11:02 AM spike jones via extropy-chat <
extropy-chat at lists.extropy.org> wrote:

> I didn’t follow this story very closely but what I heard doesn’t make
> sense.
> Some hackers somehow installed ransomware on the Colonial Pipeline system
> which caused a shutdown, resulting in fuel shortages on the east coast, but
> the company paid the ransom in bitcoins and got it back running again.
> That part makes sense, but the next part doesn’t.
> According to some sources, the FBI managed to get the money back somehow.
> Are there bitcoin hipsters among us who can explain how the FBI could do
> that?  Is it not true that bitcoin is secure?  If the FBI can get money
> from criminals, it can get money from anyone who it says is a criminal,
> ja?  If so, the premise behind bitcoin has been demonstrated false or
> flawed, so its value should have taken a steep dive.  I see that it did
> right when the pipeline shut down, but not when the story broke that the
> FBI had recovered some of the money.
> I don’t understand.
> spike
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