Although people believe Cryptocurrency, especially Bitcoin as a successor to the fiat currencies, it is also extensively utilized for fraudulent purposes because of the inherent security requirements built into the system,
The recent case of ransoming the Colonial Pipeline is evidentiary enough to highlight the illegitimate use of cryptocurrency.
To know more about the 8th June downfall of Bitcoin and its linkage to Colonial Pipeline’s ransom case, make sure to read the entire article.
The Colonial pipeline system was hit by a ransomware attack on May 7, 2021, directly traced to the DarkSide hacker gang in Eastern Europe.
Considering the technicalities and possible course of law, Colonial Pipeline opted to pay the payment (75 bitcoins, worth $4.4 million at the time) with the cooperation of the FBI to continue the process of tracking the culprits who demanded 75 Bitcoins in ransom.
But as they say, All that ends well, this week on Monday, the transactions were traced and recovered the ransom amount.
As of 8th June afternoon, the largest cryptocurrency, BITCOIN, had fallen as far as 9.9% to $31,036.
Although it had recovered some of its losses and transact around $32,363, things don’t seem suitable for the cryptocurrencies.
Adding more to the list, Ether, Litecoin, and others were among the altcoins that fell due to the ransom recovery.
The so-called gold of cryptocurrency, Bitcoin’s decline began since Tesla’s withdrawal on its cryptocurrency pay-out system and China’s crackdown on BITCOIN & other cryptocurrencies.
If you want to know the decline of BITCOIN & DOGECOIN in detail, make sure to visit our previous article on the same.
Antoni Trenchev, who co-founded Nexo and works as the managing partner of the company, remarked, “Bitcoin can’t get a break.”
Furthermore, Antoni added that the market deals with a long-winded regulatory overhang that will continue to weigh on Bitcoin’s price. Also, he emphasized that it’s beneficial for the industry in the long run and crypto needs the correct kind of regulation.
The Federal agencies of the United States have recovered 63.7 Bitcoins of the 75 coins ransom paid to the hackers responsible for the attack on the company last month.
Such an act demonstrates that law enforcement can track down online fraudsters even if they operate beyond the boundary of the jurisdiction of the land.
How did the FBI recover ransom Bitcoins?
On June 7, 2021, an operation led by the FBI’s San Francisco Division recovered 63.7 bitcoins of the entire payment.
Although they failed to hit the bullseye target of the original ransom of 75 bitcoins, the process of tracking was immensely technical and challenging.
The tracking also broke some presumptions about the cryptocurrency that included that transaction data can still get used to track bitcoin’s journey through the digital system despite common perception.
People need to understand that the blockchain stores the shared public record, which can frequently get tracked.
Although the Blockchain is secure, it is not invincible. Every transaction on a block is encrypted with a cryptographic key, so only the individual with the same key has access to it.
Similarly, in this case, one of these keys, which belonged to a hacking group member, was tracked down by the FBI.
However, it’s unclear how they got their hands on the key, but they could trace the activities back to a safe bitcoin wallet using it.
After that, the detectives collected the majority of the ransom money and re-entered it into their systems.
Everything, including cryptocurrencies, can be broken given enough time, and it is no exception.
According to Mike McGlone, who is the Senior Commodity Strategist at Bloomberg LP , the June 8’s drop was “related to fears of the Fed snatching people’s Bitcoins,”. He further asserted that the market had been in a down phase for a month now, which was a part of the uncertainty of the cryptocurrency world.
The road ahead for Bitcoin?
In the meanwhile, cryptocurrency strategists are keeping an eye on crucial technical levels.
One such barrier is $30,000, which the cryptocurrency briefly reached during a severe sell-off earlier this month.
Owing to the uncertainties, people have started predicting a even lower dip for the cryptocurrency.
However, considering the paucity of technical assistance between $20,000 and $30,000, a breach of that round-number level might spark a new wave of selling.
On the other hand, Bitcoin’s relative strength index indicates that the token is approaching the oversold level, signalling a potential reversal.
Tallbacken CEO Michael Purves believes the coin might retrace its whole outburst from $20,000 and return to that level if it continues to decrease and $31,000 and $30,000 get wiped out.
According to Michael Purves, “This type of ‘round trip’ would not be unusual for an asset (or a stock) which put in an exponential rally,”
Although it is still up around 12% this year, it has fallen from a high of about $65,000 in mid-April, putting a shadow over the cryptocurrency business.
People widely believe that the dip was compounded by Elon Musk’s vocal criticism of the token’s servers’ energy use in his statement that stopped crypto payments in Tesla.
Also, people believe that the restrictions imposed by China on cryptocurrency acted as a catalyst in plummeting it even more.
To read more about the downfall of the cryptocurrencies because of Elon Musk and China’s regulation, please go through our previous article.
We at Robust Story urge our readers to do a calculative and thorough brainstorm before investing in similar commodities.
Also, don’t forget to tell us your views on the future of cryptocurrencies in the comment section below!