Home Bitcoin Bitfinex to return stolen BTC during a ransomware attack

Bitfinex to return stolen BTC during a ransomware attack

A UK high court has mandated Bitfinex to seize about 96 stolen BTC gotten during a ransomware attack last year.

This is according to a court order released on January 17, 2020. The court has put forward a proprietary injunction on the BTC allegedly in Bitfinex custody.

The ransomware attack was on a Canadian insurance firm and affected more than 1,000 computers.

The malware used was one that encrypted files making it impossible to access them. The hacker requested $1.2 million in BTC to decrypt the data.

Bitfinex to turn in KYC data

Fortunately, the company was insured. The insurance company paid $950,000 in BTC for the losses generated by the attack.

The attacker had to first decrypt the files. And deliver a device that can unlock the system 24 hours after the payment’s completion. Yet, the firm still spent about 10 days restoring and backing up its systems.

Subsequently, the insurance company hired Chain analysis to investigate the attack. They tracked the funds to crypto exchange Bitfinex. Leading to the court asking Bitfinex to release all the info it has about the BTC payment. Including info such as KYC data.

In defense of its reputation, Bitfinex disclosed it has nothing to do with the funds.

Also adding that it will continually lend its support to locating the funds and possibly arresting the attacker. According to General counsel, Stuart Hoegner, Bitfinex has all the necessary tools and will continue to assist authorities.

Also adding that: “In this case, we have assisted the Claimant to trace the stolen Bitcoin […] the focus of the Claimant’s attention is no longer on the Bitfinex platform. It now appears Bitfinex is an entirely innocent party mixed up in this wrongdoing.”

Increase rate in ransomware attacks

The crypto space has attracted a lot of notorious individuals. Ransomware attacks have steadily increased and have become a major source of concern.

In December last year, CyrusOne paid off an attacker with $600,000 in BTC. In June 2019, a ransomware attack left all of Riviera Beach’s government files encrypted.

With Florida having to pay $600,000 in BTC to the hackers. In August 2019, Monero also suffered from crypto-jacking malware.

One really notorious ransomware is the Ryuk virus known to have attacked over 100 organizations in the USA.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Irish drug dealer loses $57M bitcoin fortune after losing access codes

Irish Bitcoin drug dealer Clifton Collins, who has forfeited digital assets worth $57 million, has continued his trial...

Federal Reserve should produce a digital dollar, Giancarlo says

Christopher Giancarlo, the former chairman of the Commodity Futures Trading Commission (CFTC) has said that the Federal Reserve should generate digital currency.

Coinbase suspends EOS activities due to degraded performance

Owing to Coinbase degraded performance experienced with EOS, the digital currency exchange firm announced via Twitter on Saturday that...

Crypto businesses in New Jersey to start collecting licenses

To ensure customers from the threats digital assets present to their investment, a New Jersey legislator has initiated a bill to organize...

Binance cloud launches to improve local exchanges operation

Binance trading platform, a digital medium where cryptos could be traded reportedly would be launched soon by the...