Ransomware Attacks and the Impact on Bitcoin's Legality

[Astronuc]

That's an interesting commentary on the underlying value of Bitcoin.

Bitcoin has been decrease in $US for some time. On Saturday, it was about $37800. On Monday morning, it hovered around $36 - $36.5k, then about $35.6k at 8pm EDT during Monday evening, and down to ~$34k by 10 pm. Since then the price has fluctuated between $31.4 and $33.8k. I don't think the Colonial ransom had much to do with it, but one would have to look at when they paid to see if there was a price spike, and what was going on yesterday when the DOJ announced the seizure of the Bitcoin ransom from the hacker's wallet.

One can only speculate on how much Colonial will recover. It would seem a drop in the bucket for them.

 

[russ_watters]

I don't think the Colonial ransom had much to do with it, but one would have to look at when they paid to see if there was a price spike, and what was going on yesterday when the DOJ announced the seizure of the Bitcoin ransom from the hacker's wallet.

I do agree; bitcoin can fluctuate 10% while you go get another cup of coffee, and it doesn't necessarily mean anything. We'll see if there is a more real/significant impact.

The article is making the commentary that since Bitcoin's value is heavily based on its utility as pre-laundered dirty money, law enforcement action that overcomes that attribute lessens its value. I would tend to agree. Even worse, the FBI now has the Bitcoin. So not only can law enforcement trace the money, they can seize it. And what if Colonial doesn't get it back? If that becomes a normal thing, I think it is a huge problem for Bitcoin moving forward.

I've been surprised by Bitcoin's resilience (though not its volatility) for several years. I'm surprised the Treasury Department is allowing Bitcoin ATMs to be set up. I think Bitcoin is clearly illegal and its viability thus far has been based primarily on the government not taking it seriously enough to bother shutting it down. This action gives a vibe that the government may be paying more attention.

 

[Leo Liu]

I don't get why the attackers didn't use XMR which ensures a higher level of anonymity instead. Now news reports that the bitcoins have been retrieved by FBI through accessing the private key. I wonder how they did it.

 

[Vanadium 50]

I think Bitcoin is clearly illegal

Breaking which law exactly?

I do agree that its value to the criminal underworld is lessened if they can be seized by a major world government.