Is Bitcoin Really Undetectable?

The colonial pipeline ransomware case has brought back the anonymity and opacity of bitcoin transactions. One week ago, the FBI revealed that it had recovered most of the 75 bitcoins the US company had paid to hackers in the DarkSite group. ” By examining the public Bitcoin blockchain, the FBI was able to track multiple transfers and identify approximately 63.7 bitcoins transferred to a specific address, indicating the victim’s ransom income. Can anyone read the US Justice Department press release?

In fact, all Bitcoin network transactions are public and freely accessible. This property is derived from the decentralized and open nature of this cryptocurrency. Anyone can create a bitcoin tip. All you have to do is install Bitcoin Core software and download Blockchain, which collects all transactions from the beginning and currently weighs over 65GB. Companies specialize in the analysis of this blockchain, especially to detect transactions of criminal origin.

This was done in the case of the colonial pipeline. By analyzing the transactions, the FBI was able to identify the wallet that held the bulk of the ransom paid. But identifying the address to access the funds is not enough. For this – it is a real achievement of the American police – it is necessary to have a personal key.

How did they get their hands on this secret code? Mystery. He asked Brian Krebs, Many experts believe the confiscated money came from a partner of the authors of the ransomware. DarkSite, in fact, uses an indirect hacking model: the team makes their malware available to third parties responsible for fitting it into a company’s network. The redemption amount is then shared. In this case, the distribution key seems to be 85% for the partner and 15% for the teachers.

Lack of operational security

Surprisingly, the pirates did not further arm their operations. Because with the Bitcoin network, using mixers or ” Dumbledores ”, Such as Wasabi Wallet or Smart Mix. These intermediaries can embellish transactions by distributing them over multiple sizes and with deferred payments. Obviously, these intermediaries charge transaction fees and users are never safe from fraud. As for the private key, you can protect it by making sure that it is never stored in memory on the computer connected to the Internet. For example, by using a “hardware wallet” such as a ledger or treasure. If the FBI can capture a private key, it is because it is stored in a sufficiently secure computer system.