[HN Gopher] DarkSide ransomware gang quits after servers, Bitcoi...
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       DarkSide ransomware gang quits after servers, Bitcoin stash seized
        
       Author : feross
       Score  : 551 points
       Date   : 2021-05-14 15:47 UTC (7 hours ago)
        
 (HTM) web link (krebsonsecurity.com)
 (TXT) w3m dump (krebsonsecurity.com)
        
       | notjes wrote:
       | Nice story bro.
        
       | [deleted]
        
       | dqpb wrote:
       | Going after oil companies strikes me as no different than going
       | after the mafia. It's the kind of thing you do if you want to end
       | up with your head in a box.
        
       | paulpauper wrote:
       | It would be ironic if they were victims of someone else's
       | ransomware
        
       | [deleted]
        
       | [deleted]
        
       | ggggtez wrote:
       | I think this roughly answers a question that I've been wondering
       | about: Why don't cyber criminals hack into the energy grid,
       | water, or other utilities? Surely their cyber security is
       | outdated right?
       | 
       | Well, their cyber security may not be the most advanced, but
       | _traditional_ security (i.e. military strength) likely dissuades
       | criminals from choosing those targets that are likely to put them
       | on the short list.
        
         | Verdex wrote:
         | For some reason, this comment immediately made me think of an
         | alternate history where ransomware groups hack infrastructure
         | and then improve and monitor their security for them.
         | 
         | "Look guys, yeah, it's really easy to hack the power plants
         | that supply electricity to the white house, but then we'll all
         | have military ninjas showing up in our bedrooms at 3 in the
         | morning. So if you try that little stunt again, then we're
         | going to get our own ninjas to give you a visit. Go hack a
         | cereal company or something."
        
         | aerostable_slug wrote:
         | I think DarkSide addressed this. They don't want to be viewed
         | as a threat to society. They are thieves, they go after soft
         | targets with deep pockets and ideally insurance, and they don't
         | want to have the public or nation-states interested in them.
         | 
         | The game changed when the valves to the pipeline were closed as
         | a precaution. They just went from thief to threat.
        
       | plank_time wrote:
       | Either the founder stole the money himself, or the NSA showed the
       | world just how powerful they are when they flex. If it's the
       | latter, I'm really impressed by their skills.
        
         | manquer wrote:
         | The guys developing the ransomware are not necessarily the guys
         | behind this group. Even if the developers were in-house, they
         | may not be managing the money. So hack may be not be as
         | difficult as we might think.
         | 
         | It is kind of ironic actually, the ransomware targeted billing
         | systems of colonial, however they didn't really secure their
         | own money.
        
       | KONAir wrote:
       | I still can't wrap my head around how can such a critical
       | infrastructre is not air gapped. This is just so... basic. You
       | will never be secure enough, this is not what internet is for.
        
         | TameAntelope wrote:
         | It probably is, their billing systems aren't though.
         | 
         | I believe they shut down the pipeline because they were unable
         | to bill.
        
         | inputError wrote:
         | ive supported some major oil drilling companies in the midwest
         | and they are the biggest cheapskates I have ever dealt with,
         | and that's including credit unions.
        
       | ASalazarMX wrote:
       | Once I had the fortune of seeing the three cups and a ball scam
       | live, on the street. One guy does the trick, another encourages
       | the victim, and a third one watches the crowd disguised as a
       | random onlooker. If something makes the onlooker nervous, he will
       | signal the others and they will grab their things and disappear
       | in less seconds than your hand has fingers.
       | 
       | This sudden quit seems similar, specially with the withdrawal of
       | funds to an "unknown address", as if they closed shop and
       | disappeared.
        
         | mathgenius wrote:
         | How does the scam work ? You got me curious...
        
           | damontal wrote:
           | Ball gets placed under one of three cups. Cups get mixed
           | around and people guess where the ball is for money. The ball
           | isn't under any of them though. The scammer palmed it.
        
             | ASalazarMX wrote:
             | Each round is double or nothing. The victim wins the first
             | few rounds, but he starts losing after the scammer starts
             | hiding the ball instead of putting it under a cup. The
             | victim keeps doubling on, thinking they will eventually
             | win, but it never happens.
        
             | jmkni wrote:
             | I guess people let their guards down when the _plant_ in
             | the audience gets it right and win some money, they pay
             | less attention to the scammer 's sleight of hand.
        
               | [deleted]
        
           | treme wrote:
           | https://www.youtube.com/watch?v=hGAfimeeCD8
        
           | ggggtez wrote:
           | Aka "three card monte". People get tricked because they don't
           | realize it's a team of people, not just one.
           | 
           | And if you notice the trick? Well, they out number you. You
           | probably won't win in a fight either.
        
       | icecap12 wrote:
       | Feels like a nation-state response. US Cyber Command? Either way,
       | a chilling warning to organized hacking groups.
        
         | bdamm wrote:
         | Frankly I hope it is.
        
         | throwaway6734 wrote:
         | hopefully this isn't the last of it.
         | 
         | These people need to be found and imprisoned
        
           | nxc18 wrote:
           | Imprisonment seems generous. Perhaps a very small prison 6'
           | down would be more suitable.
           | 
           | I'm mildly surprised they survived this long
        
         | jtbayly wrote:
         | Feels like an inside job. "Oops. We lost all the money of our
         | affiliates. Our money is gone too. No we didn't take it."
         | 
         | Sure you didn't.
        
           | [deleted]
        
           | ggggtez wrote:
           | That doesn't make a lot of sense. If they thought that they
           | could take a golden exit, they wouldn't be continuing to
           | setup the business again under new rules to avoid government
           | scrutiny.
           | 
           | They'd just take the money and disappear. The fact that they
           | are continuing means that they want to continue the business.
           | 
           | And if they are doing that, then why would they suddenly
           | break all existing contracts? Surely that would ruin a lot of
           | their reputation, and hurt their ability to get clients. Can
           | you imagine what kind of amazing free PR they would be
           | getting if they continued the attack? Surely other criminals
           | would be amazed at their ability to resist counter hacks.
           | That would mean more clients and more money.
           | 
           | No, no. While I'm sure there is theft in the ransomware
           | world, I don't think you make this kind of play from a
           | position of strength.
        
           | qaq wrote:
           | 100%
        
         | hnnnnnnng wrote:
         | Yes. I doubt any other organization has the capabilities to
         | break Tor anonymity. They don't want to reveal their hand so
         | you will only see their tools used in extreme circumstances. At
         | most we will get some official parallel construction nonsense.
        
       | SpinsInCircles wrote:
       | It's easy to quit went your a bunch of cunts and find our that
       | you have poked the big dog and now are scared, fuck them, and
       | anyone like them. As I said earlier insurers should put a bounty
       | on these pricks, lets put an open bounty on them and theirs.
        
       | keymone wrote:
       | This is good for Bitcoin.
        
       | slt2021 wrote:
       | dont mess with american oil, period. never ever
        
       | billytetrud wrote:
       | The way the article talks about these cybercrime gangs makes them
       | sound like a benevolent government or non profit. They're putting
       | up restrictions? Gang representatives are talking to the press?
       | What kind of world is this?
        
         | adventured wrote:
         | The idea is to narrow who's going to chase after you, based on
         | how you're perceived in terms of being a threat.
         | 
         | They want a certain type of police/authority chasing them for
         | financial crimes, not special forces cutting their throats in
         | the middle of the night because they're perceived to be
         | terrorists attacking a superpower's critical infrastructure and
         | trying to harm large numbers of people.
        
       | null_object wrote:
       | So taking down hospitals and healthcare facilities was fair game.
       | But messing with Big Oil was just a step too far.
        
         | [deleted]
        
         | sriram_sun wrote:
         | Oil shortages and long lines make for good/bad TV. Fear of bad
         | media coverage energized the Govt. to act.
        
           | rattray wrote:
           | Perhaps part of the difference was that it took longer for
           | the victim to pay this time. Presumably Hospitals cave before
           | the impacts make the headlines.
        
             | lostlogin wrote:
             | I've got colleagues who have had radiology hardware that
             | got locked - CT scanners specifically. The NHS paid and
             | they were back to work in a couple of hours.
        
           | PeterisP wrote:
           | I'd guess that it's entirely the other way around - govt
           | wanted to act, so they drummed up the bad media coverage to
           | justify removing any restrictions they had to (re)act
           | quickly, instead of through the usual law enforcement process
           | which takes months or years.
        
         | dboreham wrote:
         | The pipeline thing was just a pretext to open the can of
         | whupass. It could have been an electrical grid, chemical plant,
         | whatever. The hospitals the the past few months would have been
         | the catalyst for the dept. of whatever TLA that pulled off this
         | operation. It takes a while to get authorization, staff up the
         | team etc.
        
         | unethical_ban wrote:
         | It's an interesting point. I think there is a big difference
         | between hitting decentralized targets and disabling fuel
         | transport for the entire east coast, BUT
         | 
         | if it was this possible before, why wait until now?
         | 
         | Or, if it isn't true - perhaps they're deflecting attention.
        
         | balls187 wrote:
         | That shouldn't be a much of a surprise; the US has always
         | aligned itself with protecting it's oil supply.
        
           | ctdonath wrote:
           | Crude insult. Akin to criticizing someone for "aligning with
           | protecting his oxygen supply".
        
             | WarOnPrivacy wrote:
             | Cage match. Me with no gas vs. you with no oxygen
        
               | ctdonath wrote:
               | Sure. You with oxygen, me with gas ... and the striker
               | omnipresent on my keychain. You're goin' down in flames.
               | 
               | :-)
        
             | elevaet wrote:
             | I believe you mean a Light Sweet Crude insult.
        
             | telmo wrote:
             | > Crude insult.
             | 
             | Kudos if that was a deliberate joke.
        
           | Edman274 wrote:
           | Everyone freaks out about oil. Japan attacked the United
           | States in World War 2 because the United States stopped
           | exporting oil to Japan. It was the primary motivator behind
           | Pearl Harbor.
        
           | dwheeler wrote:
           | Every country protects its food, water, and energy supply.
           | Exceptions stop being countries.
        
           | russellbeattie wrote:
           | Why are you being down voted? Every major war and
           | international crisis in my lifetime has been directly or
           | indirectly related to US prioritizing oil above pretty much
           | all else. From the Iranian revolution to the Gulf wars, to
           | the terrorism our involvement in the middle east has caused,
           | to the climate crisis and our lack of efforts to reduce
           | consumption.
           | 
           | Whoever called this an insult isn't paying attention.
        
         | [deleted]
        
       | AtlasBarfed wrote:
       | This just seems like the group is just closing the storefront and
       | will spin up another at some other point. Almost like it's a show
       | seizure of drugs to show "something was done" but really nothing
       | was done.
       | 
       | How do you "seize" bitcoin?
        
       | g_p wrote:
       | > The REvil representative said its program was introducing new
       | restrictions on the kinds of organizations that affiliates could
       | hold for ransom, and that henceforth it would be forbidden to
       | attack those in the "social sector" (defined as healthcare and
       | educational institutions) and organizations in the "gov-sector"
       | (state) of any country. Affiliates also will be required to get
       | approval before infecting victims.
       | 
       | Statements like this seem to point to ransomware activities being
       | far more coordinated and "business-like" than they often get
       | credit for.
       | 
       | I do wonder if ransomware is (in a strange way) a(n illegal)
       | free-market response to what is perceived to be an under-
       | valuation of tech skills - aggrieved people who can carry out
       | attacks and gain access to deploy ransomware are likely to be
       | able to earn more through this route, even factoring in their
       | "risk of being caught".
       | 
       | If a market correction occurs (ransomware becomes a real fear,
       | organisations rapidly start to value security skills more and pay
       | "megabucks" for the skills and hire them at-scale), the
       | risk/reward of being caught starts to mean access brokers reduce
       | in number, and the compensation reaches a free market equilibrium
       | (accounting for the "getting caught" risk of criminal activity).
       | 
       | A lot of the time I still see people trying to hire entry-level
       | people into live/ operational security roles, without the
       | experience they'd need. I wonder if this is partly due to a
       | desire to cut costs, rather than accept the need to pay rock-star
       | compensation?
        
         | nyghtly wrote:
         | I think you're on to something in the context of globalization.
         | There are many incredibly talented tech workers globally who
         | can't get paid what they're worth because they lack access to
         | employment with the wealthiest employers (because of strict
         | border policies and the lack of visa sponsorship). If they had
         | the freedom to migrate, then they might choose to seek
         | employment in another country with a supply shortage, rather
         | than enter the black market.
        
         | JackFr wrote:
         | > I do wonder if ransomware is (in a strange way) a(n illegal)
         | free-market response to what is perceived to be an under-
         | valuation of tech skills - aggrieved people who can carry out
         | attacks and gain access to deploy ransomware are likely to be
         | able to earn more through this route, even factoring in their
         | "risk of being caught".
         | 
         | Sure. In the same way the mugging people is a response to
         | undervaluing "beating the crap out of people and taking their
         | money" skills.
        
           | at-fates-hands wrote:
           | Its been said before:
           | 
           | "When the system fails you, you create your own system."
           | 
           | Which relates to what you're saying. When clever, intelligent
           | people are ostracized and marginalized, they then use those
           | skills to get illegally what society has prevented them from
           | getting legally.
           | 
           | At some point, the idea of getting caught doesn't even
           | register anymore.
        
             | JKCalhoun wrote:
             | Were these people ostracized and marginalized?
             | 
             | If we just paid engineers more would this type of crime
             | disappear?
             | 
             | Or is greed, ego, arrogance also a part of their actions?
        
               | at-fates-hands wrote:
               | >> Were these people ostracized and marginalized?
               | 
               | We probably will never know. A lot of hackers turn to
               | hacking because of various reasons - some ideological,
               | others because they felt they didn't fit in anywhere
               | else.
               | 
               | >> If we just paid engineers more would this type of
               | crime disappear?
               | 
               | Probably not. You cannot get rid of one type of crime by
               | simply paying people NOT to do it. It is what is - at no
               | time in human history has any civilization had zero
               | crime. That's regardless of punishments and financial
               | incentives.
               | 
               | >> Or is greed, ego, arrogance also a part of their
               | actions?
               | 
               | I think its different things at different times. When I
               | was hacking, it was arrogance, thinking I was smarter
               | than others and trying to prove it. That leads to
               | thinking you are beyond law enforcement when you get away
               | with it (ego). If you're into it solely for financial
               | gain, then the other two feed your greed. Get one nice
               | payout for your ransomware and now you think its easy to
               | do and you'll never be caught - increasing your greed to
               | get more.
               | 
               | They all kind of play into each other:
               | 
               | arrogance: "I'll never get caught."
               | 
               | ego: "They'll never catch me, my ops sec is too good for
               | law enforcement."
               | 
               | greed: "This was too easy, next time I'll target a bigger
               | company for a bigger payout."
        
         | cjblomqvist wrote:
         | That's not really reasonable - what about replacing hacking
         | with murder? It's illegal for a reason - and not because it's
         | too costly to do.
        
           | johncessna wrote:
           | I was thinking replacing hacker with scammer. After all,
           | Scammers scamming old folks are just showing a gap in online
           | education and regulations.
           | 
           | Ransomware gangs aren't the vigilante heroes/embodiment of
           | the undervalued IT security worker. They're a group of people
           | looking to make a quick buck and don't give a damn about the
           | harm they cause or who they cause it to.
        
         | johncessna wrote:
         | > "We are apolitical, we do not participate in geopolitics, do
         | not need to tie us with a defined government and look for other
         | our motives [sic]," reads an update to the DarkSide Leaks blog.
         | "Our goal is to make money, and not creating problems for
         | society. From today we introduce moderation and check each
         | company that our partners want to encrypt to avoid social
         | consequences in the future."[1]
         | 
         | [1] https://krebsonsecurity.com/2021/05/a-closer-look-at-the-
         | dar...
         | 
         | Yeah, just dirtbags making money.
        
           | at-fates-hands wrote:
           | Sounds like they're about to get rolled up by law enforcement
           | as well. As someone who's had the full force of a three
           | letter agency come down on me, this is not something you want
           | to deal with on any level. I was lucky. I was young and dumb
           | and got a slap on the wrist.
           | 
           | Times have changed and when govt agencies see this as an
           | attack on critical infrastructure, you're looking at some
           | serious jail time. I would say its only a matter of time
           | until they're tracked down. When you're being hunted like
           | that, the govt works 24/7 and never stops. People on the run
           | don't have that luxury.
        
             | johncessna wrote:
             | Thanks for sharing your experience. Not to dig too deep
             | into details, but what would you say your primary
             | motivation was in your 'young and dumb' days? Were you
             | curious about it, was it a statement, was there an allure?
        
               | at-fates-hands wrote:
               | For me it was about making a statement.
               | 
               | I had gotten into an argument with a professor on a
               | discussion board. He used derogatory terms to refer to
               | me, which pissed me off. I sent him a virus that was
               | supposed to just damage files and delete some random
               | files. It turns out it propagated onto their main network
               | and crashed the entire universities network.
               | 
               | Suddenly, you feel untouchable (even though the virus had
               | gotten out of control, which I didn't mean it to do). You
               | feel like you can do anything and are beyond the reach of
               | law enforcement. I'd never done anything like that and
               | you felt really powerful, in control. You now had this
               | idea if someone slights you, you have something to shut
               | them down and they can't reach you.
               | 
               | Then the feds show up in your class, bring you to a
               | windowless room on campus you didn't even know existed
               | and start threatening you with jail time while they
               | question you. This happened in the late 90's and the CFAA
               | was still really new and DA's really didn't know how to
               | apply it. I was pretty lucky for sure. The stuff they
               | were threatening me with was like interference with
               | interstate commerce, identity theft, stuff like that.
               | They gave me the old, "You have a bright future kid,
               | don't fuck it up." speech at the end. That was enough to
               | scare me straight so to speak. I lost my campus network
               | access for a year, which sucked, but the whole experience
               | was enough for me to stop doing what I was doing.
               | 
               | It was just in time too, because you saw during the early
               | aughts, the feds really started going after hackers. They
               | started using the broad powers of the CFAA to put some
               | really high profile people in jail with some pretty hefty
               | prison times. To this day, I still look back and feel
               | like I dodged a bullet there.
        
               | shortstuffsushi wrote:
               | > It turns out it propagated onto their main network
               | 
               | > the virus had gotten out of control, which I didn't
               | mean it to do
               | 
               | This isn't just a whoops, how do you "accidentally"
               | create a virus that leaves the boundaries of the computer
               | and traverses their network?
        
               | maxvu wrote:
               | Already-mounted SMB?
        
               | at-fates-hands wrote:
               | A stupid mistake a script kiddie makes when playing with
               | malware you're not familiar with.
               | 
               | I copied an existing virus someone had given me. The last
               | part of the virus was to multiply and seek out any other
               | computers attached to the network and delete and damage
               | the files on those computers as well. I didn't know that.
               | When it damaged the professors PC, he was using it on his
               | home network, so he said there was only one PC it
               | infected.
               | 
               | When he got back to campus, he sent the email to the
               | network team (a group of students and professors) and
               | they tried testing it out on a group of PC's. They
               | thought the PC's were sandboxed. Turns out they weren't.
               | The next 24 hours the virus rampaged and pillaged PC's
               | attached all over the network. I'm still not sure how it
               | eventually crashed the network. All the people involved
               | refused to tell me exactly how it crashed their network -
               | they said they didn't want me encouraging others to do
               | it, so I was never told the full story.
               | 
               | To this day, I'm still not sure what happened, but it had
               | to be bad enough to call in the Feds, right?
        
               | NaturalPhallacy wrote:
               | Off the top of my head: Mounted network drives
               | 
               | Save the malware there, then anybody on the network with
               | access can run it.
        
           | Miner49er wrote:
           | This is better then most rich businessman, actually. Many
           | don't care if they create problems for society, if it means
           | more money for them.
        
             | colechristensen wrote:
             | They are, of course, lying. They don't want the extra
             | attention that comes from attacking public infrastructure
             | or affecting large numbers of people.
             | 
             | Nobody cares if you sabotage a random small business. Lots
             | of people care when you attack a fuel pipeline. Attention
             | is bad for this business.
        
         | throwawayboise wrote:
         | > ransomware activities being far more coordinated and
         | "business-like" than they often get credit for.
         | 
         | This is the "organized" in organized crime. It's not lone bored
         | teenagers doing this stuff.
        
         | nemothekid wrote:
         | > _I do wonder if ransomware is (in a strange way) a(n illegal)
         | free-market response to what is perceived to be an under-
         | valuation of tech skills - aggrieved people who can carry out
         | attacks and gain access to deploy ransomware are likely to be
         | able to earn more through this route, even factoring in their
         | "risk of being caught"._
         | 
         | Almost all crime syndicates work this way. There is a balancing
         | point where the crime you do does enough damage to make you
         | money, but not so much money that the government dedicates
         | elites to come knocking on your door. What DarkSide did was
         | veer too far in the wrong direction.
        
         | arrosenberg wrote:
         | > Statements like this seem to point to ransomware activities
         | being far more coordinated and "business-like" than they often
         | get credit for.
         | 
         | It's just digital Privateering - Francis Drake with a laptop.
         | 
         | > If a market correction occurs...
         | 
         | The English solved it by expanding their Navy and enlisting
         | those who would otherwise pirate. Seems like as good a solution
         | as any here.
        
         | yebyen wrote:
         | When I heard that this pipeline company started advertising a
         | job opening for CyberSecurity Advisor in the last few days, and
         | heard today the ransom of about $5 million was paid, my first
         | reaction was to say "I bet the salary for that position is a
         | lot less than $5 million, and I bet the budget for that
         | department will be less, too..."
        
           | g_p wrote:
           | I think you're spot-on here - the ransom is seen as a "cost
           | of doing business", and until recently security was seen as
           | "a problem that happens to other people".
           | 
           | Sadly my experience is that organisations like this will take
           | their $5m ransom (or other remediation cost), assume it's a
           | one-off, then divide it by their number of ransom-free years,
           | and proclaim it was better value for money than hiring 2 or 3
           | senior security gurus on $300k /yr with 60 vacation days, and
           | letting them bring in a team to deliver meaningful security.
           | 
           | Beyond taking security out of the hands of bean-counters
           | though, I'm not sure how you address this. Pursuing
           | organisations that pay ransoms and prosecuting senior
           | CEO/CFO-type executives for conspiracy to commit money
           | laundering (and pushing for criminal convictions) could
           | discourage paying ransoms. If it's left to businesses as
           | something they can write down as a "cost", I don't see it
           | getting better - there has to be a risk to the liberty of the
           | CEO/CFO before they'll take security seriously in my
           | experience. 90 days in federal prison would certainly sharpen
           | their focus in future.
        
             | briffle wrote:
             | Even better, they will take the cost of their Insurance
             | Deductible, and then do those calculations. Most businesses
             | have insurance for this stuff.
        
               | aerostable_slug wrote:
               | And DarkSide has stated they target businesses with that
               | insurance. It's smart. They were hosed the moment
               | Colonial's infosec (or whomever) recommended closing the
               | valves on the pipelines. Until that moment they'd been
               | doing reasonably well (for criminal scum).
        
               | g_p wrote:
               | Interestingly, it looks like (some) insurers may be
               | responding to this.
               | 
               | > In an apparent industry first, the global insurance
               | company AXA said Thursday it will stop writing cyber-
               | insurance policies in France that reimburse customers for
               | extortion payments made to ransomware criminals.
               | 
               | https://www.insurancejournal.com/news/international/2021/
               | 05/...
        
               | [deleted]
        
             | kbenson wrote:
             | Well, sometimes they're right. The hit company will likely
             | call in some consultancy to institute a bunch of newer and
             | better security protocols, then call it a day. If they
             | really aren't hit again for another decade and staffing a
             | department would cost $500k a year or more, were they
             | wrong?
             | 
             | It's a gamble. It's easy to point fingers at the company
             | that was caught out, but for the hundreds or thousands that
             | aren't ransomed and aren't paying the extra money for
             | security, they took that gamble and so far they've come out
             | ahead not having spent all that money on prevention.
             | 
             | I'm not advocating that these companies to have less
             | security or not do better on security, but the fact is a
             | lot of them have made the objectively correct decision _for
             | themselves_ , which will continue to be correct right up
             | until they're hit, if they ever are. The whole situation is
             | analogous to health insurance in a way, and the same
             | incentives are at play, along with similar consequences for
             | individual companies and all of us as a whole, as providing
             | easy targets for these groups allows them to thrive and
             | grow and target others.
        
               | yebyen wrote:
               | They paid $5 million, if "it was cheaper for them,"
               | that's solid math that ignores some really important
               | stuff though, LOL. What is the externalized cost of this
               | crisis on the entire country? The $5 million dollar
               | ransom is a worse deal if you can convince your board to
               | consider that externality.
               | 
               | The criminal penalties for executives in leadership and
               | board positions (and I'm not saying this is my preferred
               | approach) would certainly go a long way toward changing
               | the calculus of this exchange.
        
               | pixl97 wrote:
               | Which is also why they need a $15-50 million dollar fine
               | on top this
        
               | Jeff_Brown wrote:
               | I'm curious about the potential legal basis for such a
               | fine.
        
               | dred_prte_rbrts wrote:
               | SOX. SOX mandates that you have reasonable controls to
               | secure financial information and it appears they didn't.
               | Every SOX audit I've been through has a IT security
               | portion.
        
               | 35fbe7d3d5b9 wrote:
               | > What is the externalized cost of this crisis on the
               | entire country?
               | 
               | If a business externalizes the cost, does it matter to
               | them?
               | 
               | Civil penalties levied by regulators will drive the
               | change that matters.
        
               | yebyen wrote:
               | > If a business externalizes the cost, does it matter to
               | them?
               | 
               | I mean, yes? Maybe not before next quarter's revenue
               | statement, but eventually it will have to start to
               | matter?
               | 
               | If your dog goes and craps in the yard every day, you
               | eventually have to clean it up or you will get flies in
               | the yard, and if you have to open the door or leave the
               | house at all then sooner or later you will have flies in
               | the house, it matters, yes. It's really not any more
               | complicated than that.
               | 
               | If you are responsible for dumping toxic waste out the
               | back door of your factory, it's only a matter of time
               | before it's in your drinking water at your house, a
               | couple of miles down the road. Externalizing a problem
               | doesn't really get rid of it, just makes it someone
               | else's problem (for now at least.) Those other people are
               | real people, and they will find you.
        
               | Jeff_Brown wrote:
               | But if you're a monopoly (a competing pipeline isn't
               | likely to spring into existence any time soon) and the
               | courts aren't inclined to impose particularly harsh
               | penalties, business as usual will remain your optimal
               | moneymaking strategy.
        
               | Jeff_Brown wrote:
               | > What is the externalized cost of this crisis on the
               | entire country?
               | 
               | One natural solution would be to subsidize cyberdefense.
               | The political difficulty is that a rational subsidy would
               | be proportional to the harm of an attack, which would
               | mean giving the most money to the biggest corporations.
               | 
               | The best solution would be for the firm to raise their
               | prices the very small amount necessary to cover the
               | expense, and for consumers to tolerate the expense
               | because they know it's worth it. But a pipeline is a
               | natural monopoly, presumably charging a monopoly-optimal
               | price that (correctly) assumes a populace ignorant of
               | such concerns until it's too late.
        
           | mgfist wrote:
           | TBH I was shocked $5 million was all it cost.
        
             | yebyen wrote:
             | I imagine it went something like this
             | 
             | "OK, now that you have our attention, and the eyes of the
             | entire international media apparatus are on us, here's how
             | we're going to do this. We're going to send some integer
             | number of million money dollars down this pipe, and you're
             | going to turn that gas pipe back on like you said you
             | would.
             | 
             | Then here's what happens next... we're going to give you an
             | integer number of minutes running head start before the
             | drone strikes start raining down on these 12 sites we've
             | identified as likely candidates for your location, ... now
             | how many millions was it that you were asking for from us
             | again?"
             | 
             | Doesn't really matter how much it was, either, if it has
             | really been seized already in less than 24 hours. Was it
             | enough to convince the boss guy or gal to take the bait and
             | risk revealing themselves? (Probably not, but IMHO that
             | wasn't likely to happen anyway, at least not since the heat
             | started getting turned up on them all.)
        
               | sudosysgen wrote:
               | There is basically a zero percent chance that the US knew
               | where they were physically.
               | 
               | The servers that were claimed to be seized were on cloud
               | platforms.
               | 
               | And even then, we don't know if this is true or if it's
               | just an exit strategy.
        
               | yebyen wrote:
               | It's easy to say "basically zero chance" when we're
               | armchair quarterbacks and not the ones in the hot seat.
               | 
               | I'm inclined to agree that our cyber-security apparatus
               | is not up to the task, but it's also true that nobody has
               | perfect OpSec, (and I'd guess there are few out there
               | have deeper pockets to track down and make sure the
               | perpetrators regret this, than the combination of US
               | government + oil companies.)
        
               | throwawayboise wrote:
               | > nobody has perfect OpSec
               | 
               | Yep. Compromised people on the inside, informants,
               | "intensive interrogation" etc. are more likely the way,
               | as has always been the case.
               | 
               | Also the agencies that would know who these people are
               | would not want to reveal what they know in order to save
               | random XYZ Corp's bacon. With this being seen as a
               | "critical infrastructure" attack and something closer to
               | an act of war/terrorism, the stakes got higher.
        
               | bluGill wrote:
               | This isn't the first such attack. You can bet the big
               | agencies worldwide have been aware of ransomware and
               | investigating. They have been putting evidence together.
               | It only takes a few of the right mistakes on the part of
               | the criminals for them to be figured out. In the long run
               | the advantage is to the police because they can keep
               | looking.
               | 
               | If you want to be a criminal who gets away with it you
               | really need exactly one big action, and at most a few
               | tiny practice runs before the big one. Choose your target
               | well because once the big one is done you have to be
               | done. (and don't do anything copycat - investigations to
               | get the first guy might find you instead)
        
           | grumple wrote:
           | The cost of shutting down this pipeline for a week is a lot
           | more than 5 million. At 3 million barrels per day going
           | through it, in 6 days that's 18 million barrels. At
           | $65/barrel that's 195 million worth of oil that didn't
           | transit and it probably has huge knock-on effects throughout
           | the affected regions (things that didn't ship, trips not
           | taken, etc).
        
             | inasio wrote:
             | I believe it was a gasoline pipeline, so the price per
             | barrel is a lot more than that.
        
           | rebuilder wrote:
           | Well, if it's more expensive to prevent the attack than to
           | pay the ransom, what's the point? ;)
        
             | g_p wrote:
             | I think you're right - as I said on a sibling comment, if
             | beans are all you count, and bean-counters rule the roost,
             | you can write this off as a one-off, and point out you had
             | 30 years without a ransomware, and therefore we don't need
             | to do anything...
        
               | [deleted]
        
               | Jeff_Brown wrote:
               | That's surely how it would be represented in order to
               | retroactively justify negligence.
               | 
               | But a more precise calculus would take into account that
               | (1) the proliferation in ransomware is recent and
               | explosive, and (2) getting hit by one ransomware group
               | doesn't mean a second group won't strike soon. (Although
               | I'm guessing the second wouldn't be allowed to use the
               | same ransomware-as-a-service platform, as that would harm
               | the platform's reputation.)
        
               | [deleted]
        
             | bluGill wrote:
             | Until the attacks get more expensive. Some companies never
             | settle law suits even when it is obvious they will lose in
             | court. As a result they only have to deal with courts in
             | cases where it is obvious they will lose since no lawyer
             | will bother a with a case that isn't obvious. (the end
             | result is about the same lost overall - when they lose they
             | tend to be punished in court for not settling)
        
             | mywittyname wrote:
             | I know you're saying this in jest, but that's the calculus.
             | 
             | The outcome here shows that executives made the right call.
             | The $5MM fee was easily paid, less than the costs of
             | security, and the insurance company will probably cover it
             | anyway. And the government/people were so outraged that the
             | attackers were met with fucking swift justice.
             | 
             | The company will probably get some grants or something to
             | cover the cost of "securing their infrastructure." Never
             | let a good crisis go to waste.
        
               | pixl97 wrote:
               | Which is why the company needs a significant fine for
               | failing to secure infrastructure.
        
               | rebuilder wrote:
               | I wasn't really saying it in jest. The ";)" was more of
               | an "oh, the horror" signifier, meaning I don't really
               | think it's great that the cost-benefit analysis here is
               | so short-sighted.
               | 
               | Any employee choosing to spend millions to avoid the cost
               | of a heretofore unencountered cyberattack would be making
               | a strategic decision, while probably not being empowered
               | to make decisions at that level. So they do not take
               | action.
               | 
               | Bureaucracies do not take visionary action. They stay the
               | course.
        
             | vsareto wrote:
             | They did get some free help from the US amplifying all of
             | this and the media essentially tying DarkSide to the
             | pipeline shutdown (even though they likely only set out for
             | the business side).
             | 
             | Maybe now utilities going to the US for a similar reason
             | will be in everyone's DR/IR plan (even if Colonial didn't
             | reach out to the US admin).
        
               | Jeff_Brown wrote:
               | Expecting the company to continue operating after
               | freezing data on the "business side" seems strange to me.
        
             | blackearl wrote:
             | Now that they've outed themselves as an easy mark, should
             | be simple to hit them again and demand more money. At some
             | point it'll be less expensive to improve their security
             | infrastructure.
        
               | hooande wrote:
               | Ransoming Colonial basically put Darkside out of
               | business. no one is going to hit them again
        
               | rebuilder wrote:
               | Or, so they say... We really don't know enough to say
               | anything here. It might just as well be that whoever
               | controls the funds at Darkside pulled an exit scam.
        
               | Jeff_Brown wrote:
               | Their stuff may have been seized, but their business
               | model has not to my knowledge been invalidated.
               | Ransomware is not a capital-intensive business. A new
               | generation of ransomware groups will quickly spring up to
               | replace DarkSide.
        
             | jethro_tell wrote:
             | This is why it's a problem. What's the point is the
             | business side, but when taken as a whole, this type of
             | infrastructure is too important to the country as a whole.
             | 
             | Everyone want's to make the calculation and hope it's not
             | them, but if it's everyone at once, or there is no ransom
             | option it's a completely different ball game. This is a
             | situation where we are asking private companies to take
             | responsibility for something outside of a profit motive and
             | the results are some what less than surprising.
        
           | [deleted]
        
         | newsclues wrote:
         | Cybercrime is the market response to under utilized/paid tech
         | workers.
        
         | WrtCdEvrydy wrote:
         | > seem to point to ransomware activities being far more
         | coordinated and "business-like" than they often get credit for.
         | 
         | This is a business that actually provides better support than a
         | regular business.
         | 
         | From conversations with friends in the Infragard side of this,
         | and the agencies that collaborate, they have 24/7 English
         | support available before and after payment, as well as
         | decryption remote support if you can't get your files
         | decrypted... there are also instances of refunds if they can't
         | decrypt your files due to technical issues.
         | 
         | Unlike regular businesses, support is a sales channel since
         | it's the way to ensure you get paid so a lot of resources go to
         | support activities in these "organizations".
        
           | mason55 wrote:
           | Yeah apparently in addition to their white label ransomware
           | software, if you licensed their software you could also have
           | DarkSide handle negotiations for you. 10%-25% of the ransom
           | and in exchange you get people who have real experience
           | handling the negotiations and have the infra in place already
           | to remain anonymous while supporting 24/7 English language
           | service.
        
             | rsj_hn wrote:
             | Ransomware-As-A-Platform. I wonder if they got the
             | criminal-underground equivalent of VC-funding, or if they
             | have something like Y-combinator to fund innovative
             | criminal approaches and promote networking -- like evil-
             | Kirk from the mirror universe, there could be a Saul Graham
             | with a mustache writing essays about unlocking value and
             | what you are not allowed to say in the ransomware
             | community.
        
               | vmception wrote:
               | There is investment infrastructure. Mostly informal and
               | enforced via smart contract and multisignature
               | transactions. Organized on forums and chat rooms.
               | 
               | Not much capital is needed though and the affiliate and
               | licensing model is better, which also just means an
               | address is hardcoded that splits payment, or a server
               | controls the private key (or master private key for
               | infinite unique address creation) to addresses and
               | automatically splits received payments to the RaaS
               | service
               | 
               | I get that was supposed to be a joke, its exactly the
               | same or even more streamlined than the licit economy.
               | There is no major distinction except the kinds of "risk
               | factors" one might list.
        
               | meowface wrote:
               | From my (admittedly shallow) understanding, all of that
               | does kind of exist and has for at least a few years, now.
               | It's also existed for longer for the DDoS-as-a-Service
               | industry. Most of it's in Russian and takes place on
               | private and semi-private Russian forums and chat
               | rooms/groups.
               | 
               | There's definitely a hierarchy to it. Any particular
               | group may not necessarily develop or own the software or
               | infrastructure they're using. You can probably liken it
               | to drug markets, where there are some top-level central
               | players and many tiers below that make up the whole
               | supply and distribution chain. (And potentially, the
               | absolute top-level / "The Commission" may be certain
               | elements of certain nations' governments, in some cases,
               | or at least closely associated with them, which further
               | complicates matters.)
               | 
               | You might find this 2020 interview with a ransomware
               | operator interesting: https://talos-intelligence-
               | site.s3.amazonaws.com/production/...
        
           | munificent wrote:
           | _> This is a business that actually provides better support
           | than a regular business._
           | 
           | The thing I find fascinating from a sociology perspective
           | about ransomware is that they _have_ to. To be a successful
           | ransomware company, you have to simultaneously be:
           | 
           | 1. Completely immoral enough to attack companies, hold their
           | data ransom and potentially put them out of business and
           | reveal the private details of thousands of people.
           | 
           | 2. Create enough trust in the company you attacked that they
           | believe you _will_ give the data back once you pay them.
           | 
           | It is crazy that they are psychologically savvy enough to
           | simultaneously attain those directly conflicting goals.
        
             | cmeacham98 wrote:
             | I don't think these goals are very conflicting. It's not
             | hard to imagine a criminal unwilling to lie and/or break
             | their promise, as a matter of fact it is a common trope in
             | works of fiction
             | (https://tvtropes.org/pmwiki/pmwiki.php/Main/IGaveMyWord).
        
             | larksimian wrote:
             | In a cynical telling this is how you start a government or
             | any organization with a monopoly on violence, ala mafia.
             | First you make it clear that you can cause damage, then you
             | make it clear that tax payers are safe. The next step for
             | ransomware companies is to offer cyber security services,
             | whether you want them or not. We've hacked you. We fixed
             | your crappy unpatched software, if you try to remove us you
             | lose all your data, so now we're your cyber security
             | partners.
        
               | ChainOfFools wrote:
               | or any self-identified 'disruptive' business model
               | really.
               | 
               | step 1: "join my disruptor gang and we'll protect your
               | lifestyle/income/status in exchange for tribute, or at
               | least not becoming a disruptee yourself."
               | 
               | step 2: end up eventually recapitulating the exact same
               | system you disrupted, but now you get all the spoils of
               | the incumbent power
        
             | dv_dt wrote:
             | There are many businesses operating in on the legal side of
             | things which I find immoral, but would trust to act
             | consistently in certain ways...
        
           | jabroni_salad wrote:
           | Maybe with Darkside, but they account for a very small amount
           | of activity. Back in the Gandcrab days, anyone with a credit
           | card could fire up their own tenancy, and they mostly sucked
           | at it. They would lose the decryption keys or send non
           | functional decryptors. They were not interested in talking
           | and just thought the RaaS platform would be a passive income
           | for them.
           | 
           | I mostly dont do ransomware housecalls anymore, but my
           | teammates tell me the situation has mostly not improved.
        
           | gimmeThaBeet wrote:
           | > there are also instances of refunds if they can't decrypt
           | your files due to technical issues.
           | 
           | I would like to hear more about this, that sounds kind of
           | hilarious. "Ah, apologies, we'll get that back to you within
           | 3 business days. Have a nice day, I hope you had backups"
        
             | vmception wrote:
             | That's exactly how it is and has been for a very long time
             | (half decade or more).
        
         | marsven_422 wrote:
         | The free market fundamentally rests on the respect for property
         | rights.
         | 
         | Ransom-ware is a violation of said property right and thus an
         | act of aggression therefore allowing for self defense.
         | 
         | Violation of property rights is always morally wrong.
        
         | omoikane wrote:
         | > business-like
         | 
         | Reminds me of this negotiation:
         | https://www.reuters.com/article/us-cyber-cwt-ransom/payment-...
         | 
         | Previously discussed here:
         | https://news.ycombinator.com/item?id=24032779
        
       | MattGaiser wrote:
       | Why does a gang have a blog/Telegram channel?
        
         | nkozyra wrote:
         | Why wouldn't they? They exist primarily online.
        
         | rattray wrote:
         | Part of their business model is drafting acolytes who pay them
         | money.
        
       | cableclasper wrote:
       | Modern Warfare.
        
         | dredmorbius wrote:
         | s/Modern/Ancient/
         | 
         | https://suntzusaid.com/book/13
        
       | whymauri wrote:
       | why are ransomware groups transacting in BTC, which can be easily
       | traced?
        
         | willvarfar wrote:
         | Just curious, what alternatives are there, and how would they
         | work?
        
           | angio wrote:
           | They can also ask for ETH and use Tornado cash to launder it.
        
           | chitowneats wrote:
           | Check out Monero. I'm a lay person when it comes to
           | cryptography and cryptocurrency, but supposedly an innovation
           | in that currency, known as ring signatures, keeps the
           | blockchain private.
        
           | lallysingh wrote:
           | Monero for transactions, then change back to BTC for value
           | storage.
        
         | smoldesu wrote:
         | Because even though the transactions can be traced, the
         | accounts holding them are arbitrary. You can observe a Bitcoin
         | transaction propagate through the blockchain, but you'll never
         | really see any personal identifiers besides the address.
        
         | ufo wrote:
         | It's easier to launder and transfer the BTC than to do the same
         | with real money. According to the article, the people behind
         | Darkside were also behind a bitcoin "mixing" service that was
         | recently shut down.
        
           | whymauri wrote:
           | but... Monero. Mixing is fine, but there's fees and overhead
           | that make it undesirable, IMO.
        
         | ribosometronome wrote:
         | Ease of access for the victims, I imagine. Going from owning 0
         | bitcoin to hundreds of thousands seems easier giving it's
         | popularity than say, monero (or whatever the anonymous centric
         | coin of the day is). And the ransomware guys can still wash it
         | later by passing it through intermediate exchanges/selling it
         | for a different crypto.
        
         | spand wrote:
         | I would expect only Bitcoin markets to have the liquidity and
         | depth where one can easily buy 5 million worth of coins.
         | Similarly when the hackers want to sell the coins again.
        
           | Taek wrote:
           | Nah there are dozens of options where you could easily move 5
           | million a day. They are probably using bitcoin because it's
           | easiest for the victim to pay in. I assume they would rotate
           | it through zcash/monero before they spend it
        
       | bredren wrote:
       | It was a mistake to attack the business side of the oil company,
       | because it created what could be sold as reasonable doubt to shut
       | down the pipeline.
       | 
       | As a result, the ransom had the optics of an attack on
       | infrastructure. As evidenced by the coverage of Americans
       | desperately filling up containers.
       | 
       | This created the impetus for the US to treat this as an incident
       | far and above the ambient ransomware activities leading up to
       | this.
       | 
       | It also gave the US an opportunity to show how effective it could
       | be when it had the political cover to do so.
        
         | 867-5309 wrote:
         | >Servers were seized (country not named)
         | 
         | >gave the US an opportunity to show how effective it could be
         | 
         | unless you know something we don't, that's quite a conclusion
         | to jump to
        
         | walshemj wrote:
         | Ripping of the average middle America Jack and Hortense is one
         | thing - start impinging on CNI and your playing big boy and
         | girl games.
        
         | omgwtfbbq wrote:
         | >It also gave the US an opportunity to show how effective it
         | could be when it had the political cover to do so.
         | 
         | Not sure what you mean, what did the US do exactly?
        
           | twobitshifter wrote:
           | These guys retweeted the story. They didn't claim
           | responsibility but it's a tacit acknowledgment of their
           | involvement. https://en.m.wikipedia.org/wiki/780th_Military_I
           | ntelligence_...
           | 
           | https://mobile.twitter.com/TheRecord_Media/status/1393192862.
           | ..
        
             | toyg wrote:
             | Wow, their motto is "ubique et semper in pugna" -
             | everywhere and always fighting. Scary platform.
        
         | TrackerFF wrote:
         | I got downvoted for saying that maybe it's time to treat
         | serious ransomware attacks (infrastructure, security, health,
         | etc.) as terrorism - as in the sense that they're a threat to
         | the national security. But this kinda shows the response I was
         | referencing to.
         | 
         | A lot of people like to think of ransomware attacks as the
         | ultimate stress test as far as security goes, and thus a good
         | thing - but let's not get too blinded by our professions (most
         | probably in tech), these kinds of attacks can have serious
         | consequences: Imagine if some foreign state agency
         | (masquerading as hackers) launches a multiheaded attack on,
         | say, utilities plants - in the middle of the winter. The
         | victims/targets will pay whatever us necessary.
         | 
         | With that said, I understand that many people will recoil at
         | such things - we saw what the patriot act did, and how easy it
         | is to overstep and abuse such laws, in the name of "national
         | security". But it is a serious problem, in the same way actual
         | piracy thrived in the gulf of Aden, as soon as the shipping
         | companies started paying.
        
           | babypuncher wrote:
           | That reasoning is really dumb. It's like saying school
           | shootings are the ultimate stress test on a local police
           | department. They sure are, but nobody in their right mind
           | should ever argue that getting real world experience with one
           | is ever a good thing.
        
           | citizenkeen wrote:
           | "Intentional threats to national security" are not ipso facto
           | terrorist acts, but they should be addressed with the same
           | level of severity.
        
             | iratewizard wrote:
             | Agreed. To call it terrorism would water down the meaning
             | of the word.
        
           | arcticbull wrote:
           | IMO terrorism is a "waffle word" that doesn't really have any
           | meaning anymore. Originally a use of violence and
           | intimidation against civilians in pursuit of political
           | ideology, it's come to mean "people we don't like, who aren't
           | state actors and don't fit conventional organized crime
           | narratives."
           | 
           | I don't think it's necessary to staple the term to the action
           | in order to take it seriously. It should, however, be taken
           | seriously as the national security threat it is. For
           | instance, climate change _is_ a national security issue but
           | oil executives, while distasteful, aren 't terrorists.
           | 
           | I agree that many folks in the tech community (and especially
           | here, though I don't know if they're overrepresented here)
           | treat technology as platonic. That's not going to cut it
           | moving forward. Technology that enables bad things in the
           | world should be curtailed even if its "neat."
        
             | watwut wrote:
             | Original definition did not required target to be
             | civilians. Suicide attacks against military were called
             | terrorism too.
        
             | Inhibit wrote:
             | To your point these folks seem pretty well defined as
             | organized crime. Or possibly foreign military if
             | appropriate.
             | 
             | I'm not sure leaving infrastructure hanging out in the
             | breeze can be compensated for by cracking down on personal
             | liberty, however. Unless you're proposing cutting off
             | international computer network integration.
        
             | walshemj wrote:
             | Original its terror for terrors' sake to disrupt society
             | not for individual aims is my understanding.
        
           | bityard wrote:
           | You could treat ransomware attacks with the same seriousness
           | as terrorism since the practical effects are similar, but the
           | key point of terrorism is that it is politically motivated.
           | So a terrorist group could launch a ransomware attack, but
           | not all ransomware campaigns are terrorism.
           | 
           | The meanings of words is important; rational discussion is
           | impossible when people shift commonly-accepted meanings and
           | definitions to suit their agenda. It's an extremely common
           | strategy in politics. And the word "terrorism" already
           | received more than its fair share of this treatment quite
           | thoroughly in the decade following 9/11.
        
           | schoen wrote:
           | Maybe people didn't like your use of the term "terrorism" for
           | national security threats?
           | 
           | A common understanding is that terrorism is intended to
           | frighten people or make them feel unsafe, while various
           | official definitions of terrorism include the idea that it's
           | intended to coercively achieve some particular political
           | goal.
           | 
           | If attackers just intend to get money, they're probably well-
           | described as extortionists (or in some cases, as you said,
           | akin to pirates). If they just intend to damage a particular
           | society without demanding anything from it or getting it to
           | change its behavior, they might be saboteurs.
           | 
           | Attacks with these motives or that pretend to have these
           | motives could still be considered national security threats
           | (and taken very seriously), but maybe shouldn't be described
           | specifically as terrorism.
        
             | squeaky-clean wrote:
             | They may have just intended to get money, but they
             | definitely spread terror. I had to have like an hour long
             | phone call with my mother on Monday explaining why she had
             | to go to 4 gas stations before she could get any gas, and
             | that no the pipeline was not going to explode.
        
               | a9h74j wrote:
               | From the satire site that shall not be named: "People in
               | the Middle East head to bomb shelters after learning that
               | Americans are experiencing gasoline shortages."
        
             | cannabis_sam wrote:
             | Would the same apply for someone who physically took
             | something essential to national security hostage and then
             | demanded money?
             | 
             | Would that change if they, for example, demanded the
             | release of prisoners of a specific political persuasion?
        
               | reader_mode wrote:
               | Terrorism has to have some ideological agenda, which is
               | what makes it dangerous - I doubt you'll see suicide
               | bombers for hire.
        
               | adamselene wrote:
               | Not more than once, anyway.
        
               | brillyfresh wrote:
               | Only the ones who are bad at it.
        
               | efuquen wrote:
               | > Would that change if they, for example, demanded the
               | release of prisoners of a specific political persuasion?
               | 
               | How would that not be classified as a political motive?
        
             | thesuperbigfrog wrote:
             | On the high seas of the Internet there is a thin line
             | between pirates and state actors. There could even be
             | "privateer" (https://en.wikipedia.org/wiki/Privateer)
             | attackers who work for a nation and for profit at the same
             | time.
             | 
             | From the victim's perspective it matters less who is
             | attacking you or why they are attacking you and much more
             | what the results of the attack are, how you can mitigate
             | and recover from the damage, and what needs to be done to
             | prevent future attacks.
             | 
             | For the case of DarkSide and Colonial Pipeline, the
             | attackers did not claim to have a political motive, but the
             | resulting fuel shortages and panic buying might as well
             | have been a form of terrorism.
        
               | notatoad wrote:
               | >On the high seas of the Internet there is a thin line
               | between pirates and state actors
               | 
               | maybe in as far as their capabilities go, but the
               | important characteristic of a state actor is that
               | retaliating against them is construed as a retaliation
               | against the state that backs them. Darkside is _very_
               | different to a state actor, as demonstrated here -
               | retaliation has no significant geopolitical implications,
               | so it can be swift and harsh.
        
               | wongarsu wrote:
               | Just causing terror doesn't make it terrorism. Causing
               | terror as a means to further some political (or
               | religious) goal would make it terrorism.
        
               | [deleted]
        
               | bluefirebrand wrote:
               | With that definition this is explicitly not terrorism,
               | because it was for money not for political or religious
               | reasons?
        
               | akiselev wrote:
               | Yes. Its an important distinction because they are
               | fundamentally different motives. If the motive is money,
               | various strategies can drive up the cost until the
               | behavior is no longer profitable and the bad actors stop.
               | Religion and ideology are completely different beasts and
               | most strategies that work on profiteers only entrench the
               | others.
        
               | omgwtfbbq wrote:
               | Just like how robbing a bank may cause terror to the
               | people in the bank or the neighborhood but it was done
               | for profit not politics.
        
               | 8ytecoder wrote:
               | Not sure why you're getting downvoted. That's literally
               | the Oxford dictionary definition.
               | 
               | https://www.google.com/search?q=define+terrorism
        
               | shelbyKiraM wrote:
               | FTFY: https://duckduckgo.com/?q=define+terrorism+oxford
        
           | darig wrote:
           | > I got downvoted for saying that maybe it's time to treat
           | serious ransomware attacks (infrastructure, security, health,
           | etc.) as terrorism.
           | 
           | Maybe it's time to treat distributing software that is
           | susceptible to ransomware attacks as terrorism.
        
           | thaumasiotes wrote:
           | > I got downvoted for saying that maybe it's time to treat
           | serious ransomware attacks (infrastructure, security, health,
           | etc.) as terrorism - as in the sense that they're a threat to
           | the national security.
           | 
           | Well... yes? That isn't a sense of the word "terrorism".
        
           | kordlessagain wrote:
           | HN is full of assholes who practice deprecating others to
           | find their own worth. Set yourself free of their dogma and
           | change the world the way you see it!
        
             | papito wrote:
             | Some downvoting can be truly surprising, and one factor may
             | be because HN is much more international, while I think of
             | it as "American". It _is_ Y-Combinator, after all.
             | 
             | Funny fact - one way to get down votes on HN is to say
             | something negative about that shit-tier human Peter Thiel.
             | Apparently becoming rich off of venture capital makes you
             | automatically a good human being.
        
           | podgaj wrote:
           | Serious side effects, yes. I am homeless and live in my van
           | in North Carolina and having to ration my gasoline waiting
           | for the idiots to stop hoarding.
           | 
           | These people thought they were sticking it to the man but
           | they were actually sticking it to people like me.
        
           | ChuckMcM wrote:
           | FWIW in June of 2011 the Pentagon issued a report that
           | defined how 'cyber attacks' can be classified as an act of
           | war. Part of the defense department review of threats against
           | the US. However, they have to be plausibly tied to a state
           | actor such as Russia or North Korea (to give two examples)
           | The net result was that the Pentagon considers military
           | response (both kinetic and cyber) as legal and sanctioned
           | ways to respond to cyber attacks.
           | 
           | Generally though, the Justice department defines terrorism to
           | be _" the unlawful use of force and violence against persons
           | or property to intimidate or coerce a government, the
           | civilian population, or any segment thereof, in furtherance
           | of political or social objectives"_
           | 
           | These ransomware attacks fall in the middle. They are
           | 'deniable' by state actors as just crooks who happen to be
           | within their borders. They certainly don't push any social
           | objective other than to enrich the criminals. So that leaves
           | them under the jurisdiction of law enforcement.
           | 
           | I have read anecdotal evidence that there are the equivalent
           | to "Letters of Marque"[1] for Russian criminals who attack
           | enemies of the Kremlin. They wouldn't completely qualify as
           | the Russians aren't actually in a declared state of war (this
           | works fine for North Korea) but conceptually if you accept
           | that criminals are gonna crim, then pointing them at people
           | you don't like at least keeps the damage outside of your area
           | of concern.
           | 
           | In this particular case, the fairly rapid take down of these
           | guys gives me pause. One wonders if the FBI and Interpol had
           | Colonial pay with Bitcoin that they then traced to the
           | destination wallets. And then working backward from there to
           | the server infrastructure. That would be an interesting
           | capability if it exists.
           | 
           | [1] https://en.wikipedia.org/wiki/Letter_of_marque
        
           | hinkley wrote:
           | As far as I'm concerned, ransomware attacks essentially fall
           | into the same classification as highwaymen, bandits, and
           | pirates. We tend to take those pretty seriously. Or at least,
           | we did once they've robbed the wrong people.
           | 
           | Sounds like the ransomeware people finally robbed the wrong
           | people.
        
           | Ericson2314 wrote:
           | "terrorism" is a concept that shouldn't exist.
        
           | vkou wrote:
           | Terrorism is a non-state use of violence for political aims.
           | 
           | Ransomware is non-state, not violent, and is done for
           | economic, not political aims.
        
             | waihtis wrote:
             | > non-state > economic, not political
             | 
             | There's a well known phenonenom of a certain large nation
             | harbouring cybercrime gangs and keeping them on the
             | government leash. Their economic activity benefits the
             | governments political agenda. Ergo all conditions are true.
        
               | vkou wrote:
               | There's also a well-known phenomena of large nations
               | harboring multi-national corporations that break the law
               | in other nations they operate in.
               | 
               | That doesn't mean that the large, developed nations in
               | question are engaging in organized crime.
               | 
               | Taking advantage of regulatory arbitrage does not mean
               | that their government is in collusion with them.
               | 
               | If it did, then we could pile a lot of crimes at the feet
               | of Western governments. Some mining firm violently puts
               | down a strike in Central America? Clearly, we can
               | conclude that Canada/the US is engaging in terrorism! [1]
               | 
               | [1] https://digitalcommons.osgoode.yorku.ca/cgi/viewconte
               | nt.cgi?... [2]
               | 
               | [2] 28 Canadian companies, 44 deaths, 30 of which were
               | targeted extra-judicial killings. Are we going to lay
               | those at the feet of Parliament, too? [3]
               | 
               | [3] Or do we have one set of standards for Russia, and
               | another for our own behaviour?
        
               | waihtis wrote:
               | There is no sense to your comparison when you're putting
               | a criminal enterprise (which exists to do harm and harm
               | only) and legitimate business into the same bucket.
        
               | vkou wrote:
               | A 'legitimate business' that occasionally dabbles in
               | murder is also a criminal enterprise.
        
               | waihtis wrote:
               | Agree to a certain extent - executives in such companies
               | need to pay the price on their actions, whether involed
               | directly or via a proxy
        
             | fencepost wrote:
             | _Ransomware is non-state_
             | 
             | Are there no ransomware operations linked to North Korea? I
             | was under the impression that there was some level of
             | activity there to maintain supplies of globally-usable
             | currency.
        
               | Forbo wrote:
               | Last I heard, they were more oriented toward
               | cryptocurrency trojans and botnet mining operations, but
               | I could be mistaken.
        
           | Arubis wrote:
           | I'd like to lean towards keeping terrorism defined
           | essentially by intent--namely, the intent to use
           | asymmetrical, threateningly or actually destructive, and
           | emotionally activating ("terrorizing") means to manipulate a
           | body politic or society towards a desired change.
           | 
           | If serious ransomware attacks are being conducted by state
           | actors with the sole intent of causing damage, and we want to
           | use powerful terminologies to describe them, "acts of war"
           | seems a reasonable start.
           | 
           | Yes, this is semantics--but some of my concern here is that
           | just freely tossing around "terrorism" gives cover for
           | organizations not to be diligent in at least attempting to
           | secure their networks and digital assets.
        
           | jcranmer wrote:
           | > I got downvoted for saying that maybe it's time to treat
           | serious ransomware attacks (infrastructure, security, health,
           | etc.) as terrorism - as in the sense that they're a threat to
           | the national security.
           | 
           | A precise definition of terrorism tends to be difficult to
           | pin down (mostly due to the difficulty of considering what is
           | a legitimate asymmetrical warfare tactic by a nascent
           | liberation movement versus an illegitimate terrorist act).
           | But a general rule of thumb is that terrorism is a) violence
           | b) directed at civilian populations c) to effect policy.
           | 
           | However, there are threats to national security that are not
           | terrorist in nature; gang warfare in Mexico and Central
           | America would be an example of such a threat.
        
           | da39a3ee wrote:
           | The definition of terrorism isn't a "threat to national
           | security". For example, your country could do something evil
           | and wrong, grievously and unjustifiably violating the
           | interests of an entity with a military, and be deservedly
           | subject to military action, constituting a threat to national
           | security. That wouldn't be "terrorism", it would just be
           | "military action".
        
           | joe_the_user wrote:
           | Treating more and more attacks "as terrorism" has it's
           | limits. The US may have awesome offensive cyber attack
           | abilities but stopping widespread ransom wear requires
           | systematic security, not threatening the bad guys, since
           | there will always be more bad guys.
        
         | normac2 wrote:
         | > This created the impetus for the US to treat this as an
         | incident far and above the ambient ransomware activities
         | leading up to this.
         | 
         | And why would you say this is desirable to the US? Just general
         | "governments take advantage of crises to gain power" reasons?
        
           | gzer0 wrote:
           | What? This makes no sense.
           | 
           | The hacker group attacked resources considered "critical
           | infrastructure"; this was closer to an act of war than any
           | other cyber attack has come. The US Cyber Command responded
           | swiftly.
           | 
           | > "governments take advantage of crises to gain power"
           | 
           | Please, elaborate? I fail to see how the US Govt is taking
           | advantage of this crisis for more power.
        
             | normac2 wrote:
             | Without breaking down my reasoning (which was pretty half-
             | baked and underthought)--I was just trying to understand
             | the OP's point.
             | 
             | OP used all kinds of language we associate with governments
             | doing sketchy stuff: "what could be sold as reasonable
             | doubt to shut down the pipeline"; "created the impetus"
             | ("impetus" is often used to claim the real motivations were
             | something else); "political cover"; etc.
             | 
             | I just didn't know how else to interpret all the cloak-and-
             | dagger language about the US's behavior. Personally, it
             | seems to me like our response was pretty reasonable. I
             | think the "government takes advantage of crises" line of
             | argument only goes so far, and at its extreme leads to dumb
             | stuff like 9/11 truthers.
        
         | tgsovlerkhgsel wrote:
         | Called it here: https://news.ycombinator.com/item?id=27101406
        
         | rini17 wrote:
         | It was a mistake to attack _overtly_. I believe $5 million can
         | be easily drained covertly and inconspicuously from
         | megacorporations.
         | 
         | I'm pretty sure it's actually happening we just don't hear
         | about it.
        
           | spoonjim wrote:
           | I don't think the criminals wanted it overt. They weren't
           | expecting the pipeline to be shut down which is what made
           | everything public.
        
           | vasco wrote:
           | It didn't work in Office Space.
        
             | fake-name wrote:
             | You do know office space is fictional, right?
        
               | mythrwy wrote:
               | I don't know that it is. You should have seen my last
               | workplace.
        
               | LadyCailin wrote:
               | I thought it was a documentary?
        
           | asperous wrote:
           | There's a huge network of financial controls to prevent and
           | detect this sort of thing, it's one of the foundations of the
           | fields of accounting. Often there are departments looking for
           | fraud regularly.
           | 
           | I suspect small or medium organizations rather then megacorps
           | would be easier targets if they haven't invested money in
           | accounting controls.
        
         | adrr wrote:
         | Russia allows their FSB operatives to moonlight on the side.
         | Darkside hackers could be government operatives and an attack
         | on critical infrastructure is an act of war. It is the same as
         | bombing the pipeline if infrastructure is disabled. I am sure
         | the cyber insurance provider won't pay and say it was an act of
         | war by a foreign government. It always a grey area.
        
           | Joker_vD wrote:
           | Remember when Emotet was believed to be connected to Russia?
           | Until January of this year, when it turned out it was
           | actually Ukrainian.
        
           | Godel_unicode wrote:
           | Do you have any extraordinary evidence for these
           | extraordinary claims?
        
             | onetimemanytime wrote:
             | Very few doubt that FSB and Russian mafia are one.
        
               | eevilspock wrote:
               | those few are all here downvoting you?
        
               | Godel_unicode wrote:
               | Even if it's true that very few doubt it, that doesn't
               | mean it's true that they are.
               | 
               | See also:
               | https://en.m.wikipedia.org/wiki/Argumentum_ad_populum
        
               | jascii wrote:
               | https://bpr.berkeley.edu/2019/12/16/gangs-and-gulags-how-
               | vla...
        
             | jascii wrote:
             | It's pretty clear that the Russian Gov is not actively
             | prosecuting cyber criminals, provided they attack foreign
             | competition. On top of that, there is a fair amount of
             | forensic data indicating shared resources between hacker
             | groups and GRU operatives.
        
               | ryanlol wrote:
               | > On top of that, there is a fair amount of forensic data
               | indicating shared resources between hacker groups and GRU
               | operatives.
               | 
               | Go on
        
               | jascii wrote:
               | You could start to look at the spread of Diskcoder.C
               | across several attacks and the shared code with ExPetr
               | and NotPetya... This forms the basis for the DOJ
               | indictment against 6 officers of GRU Unit 74455.
               | 
               | There is much more if you care to go down that rabbit
               | hole.
        
               | ryanlol wrote:
               | Oh nonsense, that was well established to be an edit of
               | the binary. It's obvious the GRU didn't have the source
               | code. The idea that this was an example of the GRU
               | working with criminal hackers is plainly ridiculous.
               | 
               | https://blog.malwarebytes.com/threat-
               | analysis/2017/06/eterna...
               | 
               | Why call it diskcoder.c anyway? It's Petya
        
             | Der_Einzige wrote:
             | It's not possible to bring "extraordinary" evidence of a 3
             | letter agency doing this kind of shit the way some HN user
             | would want without ending up as a political prisoner
             | somewhere learning all about the meaning of the word
             | "pain". Never-the-less, I have no doubt that FSB operatives
             | are allowed to moonlight.
        
               | Godel_unicode wrote:
               | The United States Department of Justice has not exactly
               | been shy about charging operatives of foreign governments
               | for their illegal activities online (e.g.
               | OlympicDestroyer, Solarigate). As far as I've been able
               | to determine, neither their prosecutors nor the FBI
               | agents doing the investigating have had the problems you
               | so colorfully describe. If it were the case that this
               | type of moonlighting was happening, I think the FBI would
               | have been bringing cases to court. That would constitute
               | evidence.
        
               | T-A wrote:
               | They have. Here is a well known example from 2017 [1]:
               | 
               |  _During the conspiracy, the FSB officers facilitated
               | Belan's other criminal activities, by providing him with
               | sensitive FSB law enforcement and intelligence
               | information that would have helped him avoid detection by
               | U.S. and other law enforcement agencies outside Russia,
               | including information regarding FSB investigations of
               | computer hacking and FSB techniques for identifying
               | criminal hackers. Additionally, while working with his
               | FSB conspirators to compromise Yahoo's network and its
               | users, Belan used his access to steal financial
               | information such as gift card and credit card numbers
               | from webmail accounts; to gain access to more than 30
               | million accounts whose contacts were then stolen to
               | facilitate a spam campaign; and to earn commissions from
               | fraudulently redirecting a subset of Yahoo's search
               | engine traffic._
               | 
               | Here's what the Treasury had to say about it in April
               | [2]:
               | 
               |  _To bolster its malicious cyber operations, the FSB
               | cultivates and co-opts criminal hackers, including the
               | previously designated Evil Corp, enabling them to engage
               | in disruptive ransomware attacks and phishing campaigns._
               | 
               | More about Evil Corp etc in [3].
               | 
               | [1] https://www.justice.gov/opa/pr/us-charges-russian-
               | fsb-office...
               | 
               | [2] https://home.treasury.gov/news/press-releases/jy0127
               | 
               | [3] https://apnews.com/article/business-technology-
               | general-news-...
        
             | kleer001 wrote:
             | The entirety of the Cold War between the USA and USSR?
        
               | Godel_unicode wrote:
               | There's plenty of evidence that the USSR engaged in
               | espionage activities. There's plenty of evidence that the
               | Russian Federation has engaged in the same thing. Neither
               | of those is what is being alleged here.
        
         | this_user wrote:
         | The fact that their coins were apparently easily stolen also
         | debunks another favourite talking point of the crypto people
         | that it secures your money from government access. Clearly,
         | ways and means have been developed to do just that if
         | necessary.
        
           | lancemurdock wrote:
           | so which is it then?
           | 
           | "BTC is bad cause it can be used by drug dealers to launder
           | money"
           | 
           | "BTC is not even secure from government access"
           | 
           | Surely someone will point out both can be true but the point
           | is the anti-btc folks seem to be talking out both sides of
           | the mouth
        
             | TacticalCoder wrote:
             | > Surely someone will point out both can be true but the
             | point is the anti-btc folks seem to be talking out both
             | sides of the mouth
             | 
             | The most beautiful being: "The cryptocurrencies scam should
             | all stop but, please, let us collect all the due taxes on
             | the gains you made".
             | 
             | From that standpoint which one is it: are they legal or
             | illegal? Because it's funny that they both want it to be
             | illegal, yet they want people to pay taxes on the gains
             | they made.
             | 
             | Hypocrites.
        
               | simcup wrote:
               | Not hypocritic at all. From a legal perspective even
               | illegal made money is money made and therefore subject of
               | taxation. Tecnically you even have to describe the means
               | by that you have come to it. Otherwise you are commiting
               | tax evasion. For example if you sell 100k worth of access
               | to documented child abuse, you have to pay taxes on those
               | 100k. Thats why you have to launder money made from
               | illegal activities
        
             | simias wrote:
             | I think it's both: people who have something to hide for
             | the government can make it pretty hard (but not impossible)
             | for the authorities to track them down. On the other hand
             | average people who don't have "anything to hide" have no
             | reason to bother implementing these counter-measures,
             | making it fairly easy to track their transactions on the
             | public blockchain.
             | 
             | In this case even the pros messed it up, but this is a very
             | high profile case with undoubtedly a massive amount of
             | manpower thrown at it in various agencies. You don't mess
             | with USA's oil.
             | 
             | And even then it's unclear if the money was actually
             | confiscated.
        
           | 21eleven wrote:
           | Or one of the members of the criminal gang ran off with all
           | the cryptocurrency and then made a public post claiming some
           | form of law enforcement seized the crypto.
        
             | kwertyoowiyop wrote:
             | Or maybe they all did.
        
             | aaronAgain wrote:
             | This. Exit strategy all along. Or they were sloppy enough
             | to get monitored accessing the coin wallet and exposing
             | their private keys/passwords.
        
             | duxup wrote:
             | They seem to be trying to operate under new rules.
             | 
             | That's not what you do if you just stole everyone's money /
             | should run...
        
           | shadowgovt wrote:
           | As the old xkcd comic notes, no amount of mathematically-
           | proven security protects your encrypted data if the private
           | keys can be beaten out of you with a lead pipe (or, the
           | cleaner version of that, "If you can be incentivized to hand
           | them over given the alternative of jail time that lasts until
           | you divulge your computer's password to the authorities").
        
           | matheusmoreira wrote:
           | > debunks another favourite talking point of the crypto
           | people that it secures your money from government access
           | 
           | In order to seize someone's cryptocurrency, the government
           | has to literally seize the private keys used to sign
           | transactions. This could be as easy as seizing computers
           | containing the key but it could also be as hard as torturing
           | people until they reveal their seed phrase.
           | 
           | They can't simply order the banks to freeze people's assets.
           | They have to physically go there and try to seize them. This
           | puts a limit on the scope of their operations. It's just like
           | surveillance: encryption makes dragnet espionage harder but
           | it's still perfectly possible for a target to be attacked
           | directly.
        
           | doggosphere wrote:
           | There is billions of dollars of value in BTC sitting in
           | wallets as an open bounty for anyone who can hack private
           | keys.
           | 
           | So which of the following is most likely:
           | 
           | - the government has a tool that can break private key
           | encryption and used it to confiscate a hacker groups funds
           | 
           | OR
           | 
           | - whoever controls the groups wallet transferred it out and
           | is on the run
        
             | fencepost wrote:
             | OR
             | 
             | Someone got a little sloppy on their payment processing
             | server (also seized) or with maintaining separate wallets
             | and control of that server allowed sending of payments to
             | an account specified by whoever was in control - likely
             | since the server was for paying affiliates.
        
               | doggosphere wrote:
               | Right, which has nothing to do with blockchain security
               | itself, and more to do with implementation of private
               | keys.
        
           | dstroot wrote:
           | This is the most puzzling part of the story. These guys were
           | evidently pretty skilled. I can see their servers being
           | seized but I am struggling to figure out how they lost their
           | currency. Did the Kremlin put a gun to their head and say
           | "unlock the wallet"? This seems especially fishy.
        
             | bolasanibk wrote:
             | I can see plenty of governments doing exactly that.
             | 
             | https://xkcd.com/538/
        
             | dleslie wrote:
             | > Did the Kremlin put a gun to their head and say "unlock
             | the wallet"?
             | 
             | You ask that like it seems implausible. To me, given what
             | we know, it sounds light-handed for them.
             | 
             | https://www.nytimes.com/2016/03/30/world/europe/russia-
             | chech...
        
           | soheil wrote:
           | Or it didn't happen and this is just a story being told.
        
           | ur-whale wrote:
           | No.
           | 
           | It just demonstrates that they're incompetent.
        
             | simias wrote:
             | This doesn't really improve the optics. If anything it
             | makes it worse: if very technical people who clearly want
             | to escape government oversight can't, what hope would my
             | 60yo "I think Windows and Word are the same thing" father
             | have to use them correctly?
             | 
             | Beyond all the technical discussion about the value of
             | cryptocurrencies I never believed that the idea that
             | everybody would carry their cryptocurrency wallet with them
             | at all time was in any way realistic. People would get
             | their wallet stolen, destroyed or lost all the time,
             | locking them away from their savings. The vast majority of
             | people will prefer having the peace of mind of entrusting
             | their coins to a third party who'd handle the technical
             | details and provide insurance against lost and theft. And
             | just like that we've reinvented banks.
        
           | RandallBrown wrote:
           | If you store your coins on a hard drive there's nothing the
           | government can do to get them right? They would need your
           | private key and your hard drive?
        
             | thanhhaimai wrote:
             | Opinions are my own.
             | 
             | There is something called the "gun test". The crypto on an
             | encrypted hard drive is not more secure than the gold bars
             | in a locked safe. Its security is a function of how the
             | secret holder response to gun-on-their-head events. In this
             | case, since the government is directly involved (and
             | angry), a lot of criminals may pick personal safety over
             | assets.
             | 
             | Frankly, I think a large portion of cryptocurrency
             | proponents are overly confident in its "decentralization"
             | and "safety". Cryptocurrency is only as safe as gold bars
             | in a locked safe; and worse if you use a public exchange.
        
               | TheSpiceIsLife wrote:
               | This is commonly referred to as _Rubber-hose
               | cryptanalysis_ :
               | 
               |  _In cryptography, rubber-hose cryptanalysis is a
               | euphemism for the extraction of cryptographic secrets
               | (e.g. the password to an encrypted file) from a person by
               | coercion or torture[1]--such as beating that person with
               | a rubber hose, hence the name--in contrast to a
               | mathematical or technical cryptanalytic attack._
               | 
               | https://en.wikipedia.org/wiki/Rubber-hose_cryptanalysis
        
               | doomroot wrote:
               | In the bitcoin space it's colloquially known as the "$5
               | wrench attack."
               | 
               | All the cryptographic, air gapped security hardware
               | doesn't matter if someone can beat the keys out of you.
        
               | robocat wrote:
               | Also perhaps a fair reason for some part of taxation.
               | Owning millions in .*coin, and the ability to freely
               | wander around in a first world country while not getting
               | hit with a wrench has a _whole lot_ of value.
        
               | gameswithgo wrote:
               | Indeed, something I've tried to communicate to wealthy
               | friends and family is that a higher tax rate,used halfway
               | effectively, means you don't have to live in a gated
               | community, in fear. You can roll around in your Ferrari,
               | live where you want, and be reasonably safe.
        
               | cletus wrote:
               | Source: https://xkcd.com/538/
        
               | ur-whale wrote:
               | While I tend to agree with your argument, there is a
               | difference: crypto is safe if no one knows it exists, or
               | rather no one can link ownership to owner.
               | 
               | It's very hard to do this with gold.
        
               | asdff wrote:
               | How is this different than burying gold?
        
               | singlow wrote:
               | A. You can store redundant copies in various secret
               | locations.
               | 
               | B. To bury gold you must transport the valuable property
               | in meat space to your hiding spot after acquiring it.
               | With cryptocurrency, you hide the secrets before they
               | have value and transfer the funds to them without new
               | data actually traveling to the hiding spot,
               | electronically or physically.
        
               | almost_usual wrote:
               | So you accrue wealth and can never use it. What's the
               | point?
        
               | almost_usual wrote:
               | This is why all crypto arguments end in "world peace" or
               | a Bitcoin nation state which is centralization. The end
               | game never makes sense.
        
             | nonameiguess wrote:
             | Unless you're located inside of a foreign military
             | installation, there aren't many places to put a hard drive
             | that the government can't get to.
        
               | paulpauper wrote:
               | put the contents on the cloud
        
             | max__d wrote:
             | In general, you store the keys of your coins, not the coins
             | themselves. Everything is inside the blockchain and the
             | blockchain makes possibile to be sure that you have what
             | you should have, thanks to consensus.
        
             | ac29 wrote:
             | If you anger a sufficiently powerful nation-state, you
             | should assume all options are on the table for recovering
             | you, your hard drives, and your keys.
        
               | [deleted]
        
               | tartoran wrote:
               | The hiding crypto from government entails im large part
               | avoiding taxes, yet it seems like the government does not
               | do much to recover lost taxes on current schemes such as
               | fiscal paradises and so on. I doubt the governemnt would
               | go as far as locating a harddrive, seizing it just for
               | tax purposes. Something else must raise their flags for
               | them to go that route. Also this route is very hit and
               | miss in my oppinion and on a case by case basis
        
               | ethbr0 wrote:
               | "Does not" and "cannot" are two different things.
               | 
               | My read is that tax enforcement failure is intentional,
               | lubricated by political donations and influence, vs
               | incompetence.
               | 
               | See the high-net-worth enforcement group at the IRS that
               | was quickly shut down for murky reasons.
        
               | [deleted]
        
             | paulpauper wrote:
             | aes 256 is as strong as the decryption key . even as few as
             | 7 words from a 2000-word dictionary should thwart any
             | attackers. A slow KDF makes it all but impossible.
        
             | sorbits wrote:
             | As someone else said, you do not store coins anywhere, they
             | are derived from the public ledger (block chain).
             | 
             | What you store is your private key.
             | 
             | Your private key was generated together with your public
             | key, and your public key is, well, public.
             | 
             | So the question is, can someone re-generate your private
             | key?
             | 
             | In theory, yes, it is possible. In practice, it takes a
             | very very long time.
             | 
             | But sometimes flaws are found in the generation process,
             | like a weak pseudo-random number generated used, which
             | significantly reduces the solution space, and then it
             | becomes feasible.
        
             | macksd wrote:
             | I mean it feels almost cliche to post this at this point:
             | https://xkcd.com/538/
        
             | Teknoman117 wrote:
             | relevant xkcd: https://xkcd.com/538/
        
             | Huiokko wrote:
             | Based on Snowden's stories you can assume that they went
             | ahead as fbi/CIA national security threat which could mean
             | fast access to isps and using zero days they do have.
             | 
             | If that's not enough and anyone of them is in the USA they
             | do have access
             | 
             | Can your wallet be hard to crack? Yes but either use your
             | zero day to get all data including a Password or book a
             | little bit of supercomputer time for brute forcing.
             | 
             | They might have linguists available to help out with a
             | dictionary attack.
             | 
             | As aluminum foil hat this might have sound in pre Snowden
             | that's how it could have been played out.
        
             | NotPavlovsDog wrote:
             | iF you store your coins on a storage device not connected
             | to a computer, maybe. As long as the government does not
             | have access to the computer/phone the storage gets
             | connected to, at any one time.
             | 
             | With state actors, you have to assume they have
             | access/backdoors to most modern computing devices, and that
             | device has to connect to the internet only twice - feds
             | activate the backdoor and give it instructions, and have
             | the device send the requested info back to the fed.
             | 
             | Minix being the most popular operating system, thanks to
             | Intel-backdoor-on-a-chip, is only the tip of the iceberg.
        
             | TacticalCoder wrote:
             | > They would need your private key and your hard drive?
             | 
             | Most people serious about cryptocurrencies do not trust
             | computers/harddrives anymore since years. They use
             | "hardware wallets", which are HSMs with a very small attack
             | surface. It's not impossible that hacks happen but there's
             | a gap so wide between "a Windows 10 computer running some
             | Bitcoin software wallet" and "a Ledger Nano S" hardware
             | wallet that it's basically two different worlds.
             | 
             | Think a Yubikey (with a tiny screen) to cryptographically
             | sign your transaction.
             | 
             | $5 wrench attack still works but compromising your private
             | key(s) by "logging every OS keystroke in the name of
             | telemetry" or "using one of the tens JavaScript 0-day from
             | today" doesn't.
             | 
             | The idea behind these cryptocurrencies hardware wallets is
             | that ANY computer you connect them to is compromised (which
             | is precisely why you're using an hardware wallet) and that,
             | yet, that's not a problem.
             | 
             | I have to say: it's not a bad way to think about computer
             | (in)security.
        
           | spyder wrote:
           | I don't see anywhere that the coins where stolen by the
           | government. It could have been done by an insider from the
           | group who had access to the wallet and 1. transferred to
           | himself or 2. the damage and attention was to much for one of
           | them and some ethics kicked in and ratted out the group to
           | government. gave them his access. 3. the group got scared
           | from the attention and stopped their operation and lying
           | about the seizure, because at this point we don't even know
           | if anything was seized at all, that info comes from the
           | criminals which is hard to trust and wasn't confirmed by
           | official reports yet.
        
             | kwertyoowiyop wrote:
             | Hey, if you can't trust anonymous cyber extortionists, who
             | _can_ you trust?
        
         | tantalor wrote:
         | > business side of the oil company
         | 
         | What are the sides of any company other than "business"?
        
           | JohnTHaller wrote:
           | I think parent may mean infrastructure side. If it had just
           | attacked the office side of things, it would be the usual
           | 'company infected with ransomware' story without affecting
           | the public.
        
             | tantalor wrote:
             | My understanding is they did limit the attack to the office
             | side:
             | 
             | > After Colonial Pipeline reported that its corporate
             | computer networks were hit by the ransomware attack, the
             | company shut down the pipeline as a precaution due to a
             | concern that the hackers might have obtained information
             | allowing them to carry out further attacks on vulnerable
             | parts of the pipeline.
             | 
             | https://en.wikipedia.org/wiki/Colonial_Pipeline_cyberattack
        
             | bostik wrote:
             | The truly cynical take is that they managed to take down
             | Colonial's _billing_. In response, Colonial shut down the
             | pipeline - because obviously delivering oil without getting
             | paid is out of the question.
             | 
             | Yes, it's guesswork and pretty extreme conjecture but it
             | has just the right amount of coldheartedness to it:
             | https://zetter.substack.com/p/biden-declares-state-of-
             | emerge...
        
               | ctdonath wrote:
               | While watching the USSR collapse in real time, I noted a
               | reporter say the core of the breakdown was inability to
               | issue paychecks to bureaucrats. No pay = no bureaucracy =
               | no government.
               | 
               | I've long wondered if that really was the case, seemed
               | absolutely sensible...
        
               | AlexCoventry wrote:
               | They don't actually own the oil they're pumping, right?
               | So if their billing was compromised to the point that
               | they don't know what oil needs to be pumped where, they
               | had a legal duty to refrain from pumping it willynilly.
        
               | Scoundreller wrote:
               | Shouldn't they have a paper-based/offline downtime
               | procedure for this?
               | 
               | (Oh shit, everything just went down, turn on the
               | generator, go plug that printer and laptop in, and print
               | off all the reports of where we were from the
               | offsite/offline/whatever backup).
               | 
               | What did they do before computers?
               | 
               | Failing to plan is planning to fail and all.
               | 
               | I like the idea of monthly planned downtimes where
               | possible so people don't run around like a headless
               | chicken when things go down. No different than a fire
               | drill.
        
               | miles wrote:
               | The Colonial Pipeline Is Finally Back Online and Pumping
               | Gas https://www.thedrive.com/news/40583/the-colonial-
               | pipeline-is...
               | 
               | > New details from within Colonial Pipeline have come to
               | light surrounding the decision to shut off supply. Those
               | briefed on the matter have suggested that fuel flows were
               | shut down due to the company's billing system being
               | compromised. Company officials were reportedly concerned
               | that they would not be able to accurately bill customers
               | for fuel delivered, and chose to stop delivery instead.
        
               | ekimekim wrote:
               | The more charitable take on this is that if one system is
               | compromised, there's a high chance others may be, so if
               | you have safety-critical systems and you're not
               | absolutely certain they were properly air-gapped from the
               | compromised system, shutting them down may be the safest
               | course of action.
               | 
               | In truth both factors probably played a role in this
               | case, perhaps also with a hefty dose of "our software
               | literally can't run if billing is down because it was
               | never designed to handle that".
        
           | [deleted]
        
         | neither_color wrote:
         | The more cynical part of me thinks the key is not which side of
         | the company was attacked, rather the fact that it was an OIL
         | company. The US has basically an unlimited budget and resources
         | to go after organizations that mess with its oil supply.
        
         | geofft wrote:
         | I think the question is, how come an attack on a hospital does
         | not have the optics of an attack on infrastructure?
         | 
         | (It almost seems oil does _not_ require infrastructure - you
         | can, theoretically, prep for an oil infrastructure outage by
         | storing it containers, same as you do with water and food. But
         | you can 't really prep for a medical infrastructure outage. Is
         | it just that, as a result, there were no photos of people
         | hoarding medical care and so there was less political will?)
        
           | Denvercoder9 wrote:
           | Oil does require infrastructure. What you put in your car is
           | several steps removed from what is pumped out of the ground.
        
             | jkubicek wrote:
             | I think the parent's point was that if oil infrastructure
             | is completely disrupted, consumers won't even be affected
             | for a few days and the short-term consequences will be
             | somewhat minor (some percentage of drivers won't be able to
             | drive, deliveries may be delayed).
             | 
             | If a hospital is shut down, then people will start dying
             | immediately. The consequences are much more direct and
             | severe.
        
               | 3GuardLineups wrote:
               | lolwut? this is insane. If oil infrastructure is
               | completely disrupted it would be beyond catastrophic. Oil
               | is completely foundational to our economy
        
               | skeeter2020 wrote:
               | hospitals without IT don't just kill all their patients
               | and shut down. They slow down and loose capacity and
               | capability while the realtively low-tech business of
               | doctoring continues.
        
               | dbt00 wrote:
               | I think this is simplistic and overlooks logistics and
               | flexibility.
               | 
               | If a hospital closes, patients can be moved. If there's
               | no gas, patients can't get to any hospital.
        
               | pixl97 wrote:
               | What if you attack the hospital in the middle of, lets
               | say a covid outbreak, where no excess capacity is
               | available. Now you've likely caused a significant number
               | of deaths.
        
               | Karunamon wrote:
               | At least in the cities I've lived in, there tends to be a
               | lot of internetworking in the local hospitals. If my
               | local hospital, CRMC, were to be hit by ransomware or
               | otherwise taken down it's likely that a good chunk of the
               | city's health infra would be out or at least at risk too.
               | Not to mention the damage an attacker could do to the
               | data stored in an EHR system like Epic.
        
               | jkubicek wrote:
               | My point (which wasn't well made, admittedly) is that a
               | closed hospital has immediate and material effects.
               | Disrupted petroleum infrastructure isn't going to affect
               | consumers for days.
        
             | skynet-9000 wrote:
             | Nor can you store gasoline for long unless you stabilize it
             | (and even then), and certainly not safely in most
             | residences. Classic car owners run into this issue, as do
             | the diesel tanks for generators in datacenters (diesel is
             | much more stable than gasoline)
        
           | meepmorp wrote:
           | > I think the question is, how come an attack on a hospital
           | does not have the optics of an attack on infrastructure?
           | 
           | An attack on a hospital affects someone if they work there or
           | are using that hospital. A pipeline attack affects people who
           | drive cars places and need gas. The latter group is much
           | larger than the former.
        
             | capableweb wrote:
             | More apt comparison would be:
             | 
             | Hospital affects workers who work there and people using
             | that hospital VS Pipeline affects workers who work there
             | and people currently refilling their cars with gas from
             | there
             | 
             | Or
             | 
             | Hospital affects workers who work there and everyone within
             | a radius who could need it at any moment VS Pipeline
             | affects works who work there and people who generally rely
             | on that gas to drive
             | 
             | Suddenly the groups seems much similarly sized, while one
             | being important for staying alive VS the other being a
             | nice-to-have, if we consider it being offline for a week or
             | two only.
             | 
             | I know which one I would consider being worse if I was a
             | country. But then we're also talking about a country who's
             | fascination for oil is like no other, so this is hardly
             | surprising.
        
               | SirSourdough wrote:
               | I mean, the pipeline in question provides half of the gas
               | to the US East coast. You don't have to love oil to see
               | that losing 40% of the supply to more than 100m people
               | overnight would be a public safety (what if emergency
               | vehicles can't buy fuel?) and economic risk.
               | 
               | The number of people reliant on this pipeline is several
               | orders of magnitude greater than would be impacted by
               | taking a single hospital offline. You'd need to have many
               | hospitals impacted to create a similar level of risk. The
               | only big difference is that taking out hospital
               | infrastructure can kill people immediately whereas the
               | impact of a pipeline failure won't generally be felt for
               | days or weeks.
               | 
               | Edit: Based on your other response it sounds like we are
               | on the same page.
        
               | capableweb wrote:
               | Yeah, I understand this and agree with you. Compare one
               | of the biggest oil pipelines in the country with one
               | hospital, of course one will be worse than the other.
               | 
               | But if you instead compare 40% of the hospitals going
               | offline VS 40% loosing access to gas, with similar
               | conditions, I think the mortality will be higher by
               | attacking hospitals. I think the government could
               | probably somehow logistically ration oil if shit really
               | hits the pan too, so essentials can keep running.
               | Probably worse situation with hospitals, even though the
               | military could probably help out there a bit.
               | 
               | That's why it's weird to not react when people are
               | attacking hospitals, vs oil pipelines. But as said before
               | in my other comment, maybe not too weird.
        
               | bluGill wrote:
               | If 40% of the hospitals shutdown the majority of people
               | would not notice if you somehow kept it out of the news.
               | It would be a disaster for those who need a hospital
               | right then, but the average person doesn't even visit a
               | hospital once a year.
               | 
               | The average person fills their gas tank once a month, so
               | they are much more likely to notice personally.
        
               | selectodude wrote:
               | I guarantee if a ransomware attack shut down 40 percent
               | of the hospitals in the United States at the same time,
               | we'd have an Iraq War situation on our hands.
        
               | throwawayboise wrote:
               | Sure it's "nice to have" unless it does go on longer and
               | suddenly nobody can get to the stores to buy food and the
               | stores don't have any food to sell because the trucks
               | that deliver it can't get fuel.
        
               | capableweb wrote:
               | Thanks for expanding, that was exactly what I meant. Ok
               | for smaller duration, while a hospital without
               | functioning equipment is almost useless (compared to it's
               | original status) immediately.
        
           | nonameiguess wrote:
           | Hospitals themselves aren't really "infrastructure." All
           | hospitals can operate independently from each other, so
           | holding one for ransom only affects the one. If you can
           | actually shut down a pipeline, you affect everywhere it ships
           | to.
           | 
           | Hospitals obviously do rely on infrastructure, so you'd see
           | much more panic if someone could disrupt a national supply of
           | blood plasma or insulin or something.
        
           | [deleted]
        
           | aerostable_slug wrote:
           | I think the point people are missing is that hospitals don't
           | just stop providing services when they are hit by ransomware,
           | at least not in my admittedly limited experience. There's a
           | ton of paper involved even today and life could move on with
           | ballpoint pens and forms.
           | 
           | The game was changed when Colonial closed the valves and
           | services were impacted.
        
             | Scoundreller wrote:
             | And downtime procedures. They're not perfect, but like
             | pipelines, they existed and operated before computers.
        
           | myth_buster wrote:
           | Critical Infrastructure as Govt defines it
           | 
           | https://www.cisa.gov/critical-infrastructure-sectors
        
             | Godel_unicode wrote:
             | I'm not sure what point this comment is trying to make,
             | according to CISA emergency services are a critical
             | infrastructure sector. Therefore attacks on hospitals are
             | attacks on critical infrastructure just like a pipeline.
        
               | myth_buster wrote:
               | Five distinct disciplines compose the ESS, encompassing a
               | wide range of emergency response functions and roles:
               | 
               | * Law Enforcement
               | 
               | * Fire and Rescue Services
               | 
               | * Emergency Medical Services
               | 
               | * Emergency Management
               | 
               | * Public Works
               | 
               | Emergency Medical Services [?] Hospital
        
               | [deleted]
        
           | blululu wrote:
           | Oil is flowing constantly and continuously into every corner
           | of the country. The storage capacity is negligible and the
           | need is critical. Unlike a single hospital there is very
           | little room to shift excess capacity relative to usage and
           | the knock on effects are potentially catastrophic (we lose
           | power to every hospital in 500 miles and nobody can run the
           | generator).
        
           | throwaway316943 wrote:
           | Destroying logistic infrastructure is how you defeat a
           | country. Petroleum is critical to the functioning of modern
           | economies, if you cut that off things go badly. They really
           | kicked the hornets nest on this one.
        
           | villasv wrote:
           | I agree with you that an attack on a hospital is an attack on
           | infrastructure, though I disagree with your arguments
           | regarding oil infrastructure.
           | 
           | The difference is response is a matter of impact scale.
           | Usually, the infrastructure of a small group of hospitals is
           | at stake. This time an entire state is hoarding gasoline.
           | Both are infrastructure but the latter is causing nationwide
           | effects.
        
           | jp57 wrote:
           | In addition to the other comments, there's a difference in
           | scale here. Shutting down _a_ hospital would be like shutting
           | down, say, several dozen gas stations in one part of a city.
           | That would not have a lot of national visibility either. If
           | they simultaneously shut down every hospital between Texas
           | and New Jersey, it would have national optics.
        
           | rurban wrote:
           | Because when you attack oil it will be considered as an act
           | of war and they will counter with their war powers. Which
           | they did. No civilian police action against Sergey followed,
           | but military style seizures, bitmix closure and Bitcoin
           | retrieval. This was not the FBI, but their criminal higher
           | ups. Military style, with no civilian oversight.
           | 
           | Which is somewhat disturbing, because first the industry is
           | still considered more important than civil services (city
           | councils, hospitals). And second they will still continue
           | using Windows services in their backbones. I have nothing
           | against using Windows as frontends, but in the backbone of a
           | critical company it's criminal negligence. Easy to hack, no
           | backups, untrained admins with no idea about security.
           | Wasting billions on money on theatre, and not working
           | servers, groupware and email.
        
           | munificent wrote:
           | Implicit in your question is the idea that the reason there
           | was a stronger response here was because of _optics_
           | --because a large mass of US citizens demanded it.
           | 
           | I think a more likely answer is that optics had little to do
           | with it. Attack a hospital and you've got angry hospital
           | administrators mad at you. Attack an oil pipeline and you've
           | got billionaire oil executives and shareholders who have much
           | of the US government in their pocket mad at you.
           | 
           | You really don't want to anger people who can buy US
           | elections.
        
       | strict9 wrote:
       | Lots of opining about motives and reasoning for the shutdown, but
       | this seems like the most likely scenario:
       | 
       | > _"However, a strong caveat should be applied to these
       | developments: it's likely that these ransomware operators are
       | trying to retreat from the spotlight more than suddenly
       | discovering the error of their ways"_
        
       | gzer0 wrote:
       | "So Sergey has pulled the inevitable exit scam, proving yet
       | again, that there really is no honour amongst thieves.
       | 
       | I sincerely hope that no companies had paid the Tsar's ransom
       | before Sergey headed off for his dacha in the Urals. Forking out
       | millions and still having your network out would be a bitter pill
       | indeed to swallow."
        
       | rebelde wrote:
       | DarkSide's English is incredibly good for some supposed Russians.
       | It even has the correct use of the apostrophe in "clients'". I
       | know nothing, but my hunch is that this was written by a well-
       | educated person who grew up in the US or Canada.
        
         | andreygrehov wrote:
         | As a native Russian speaker living in New York, I concur. I
         | work in Ad Tech and deal with clients from Eastern Europe quite
         | often. Russians' English is _always_ recognizable.
        
           | dkarp wrote:
           | Is this sarcastic? Because you're a native Russian speaker
           | and yet your English isn't recognizably Russian...
        
             | andreygrehov wrote:
             | Nope, it's not. I always try to polish my English as much
             | as I can, but after more than 8 years living in US, I still
             | occasionally get messages from co-workers saying like, "hey
             | dude, not to be pedantic, but ..."
             | 
             | If I were to write a long piece, you'd almost certainly
             | notice that I'm not a native speaker. I'm subscribed to a
             | few Telegram channels led by Russian speaking people and I
             | always spot minor mistakes in their messages. Even when the
             | text is grammatically correct, the way sentences are
             | structured is what usually reveals them. I observe similar
             | pattern with the partners I work with. Heck, even my
             | English teacher's English (she is my friend on FB) is
             | different from a typical writing style of a native speaker.
             | 
             | It obviously doesn't mean that Russians cannot learn a more
             | "traditional" English, but when it comes to Russian
             | hackers...meh, the chances are low, imho.
        
               | baobabKoodaa wrote:
               | > I observe similar pattern
               | 
               | I think a native English speaker would have written
               | either "I observe a similar pattern" or "I observe
               | similar patterns". Your choice of words in that sentence
               | feels russian to me (although I may be influenced knowing
               | what you told earlier).
        
         | intricatedetail wrote:
         | Or they used something like Grammarly...
        
         | whatshisface wrote:
         | The lack of thick accents, hammer and sickle symbols, and
         | hardbass leaves me seriously questioning the plausibility of
         | this "Russian" theory.
        
           | baobabKoodaa wrote:
           | I also took note of the apparent lack of tracksuits, vodka,
           | AK-47s, and bears.
        
         | mywittyname wrote:
         | I've noticed that central Europeans have pretty stellar grammar
         | in general. I was doing some work on an open source project
         | created by a Polish team and was surprised by how many obscure
         | grammar rules they obeyed.
         | 
         | Might have something to do with many of these rules being
         | derived from Latin and their native language is probably closer
         | in structure to Latin than English is.
        
           | [deleted]
        
         | culturestate wrote:
         | I can't decide if it's worse to imply that Russians can't learn
         | English or to think that the anglosphere only exists in North
         | America.
        
           | rebelde wrote:
           | I am just saying that it is idiomatic North American English.
           | I, for instance, could not write in idiomatic British English
           | if I tried. For instance, your use of "state" in your
           | username and "anglosphere" in your one sentence strongly
           | hints to me that your English is not purely North American.
           | (I see your profile, too.) The vast majority of Americans
           | would use different terms.
        
             | culturestate wrote:
             | Looking only at the parts quoted in krebs's post, it
             | doesn't really stick out to me as either American or
             | British English. They use double quotation marks, for
             | example - American - but leave the trailing comma outside,
             | which is British.
             | 
             | Other than that, there are no giveaway spellings or idioms.
             | It could just as easily be someone whose exposure to
             | English is dominated by technical documentation, which
             | tends to use mostly American style.
        
               | rebelde wrote:
               | You have a good point about the comma. I am not sure what
               | the use of the word "funds" tells me. I think in the US,
               | only the highly-educated or those in the financial
               | industry would use that term instead of "money"
               | (bitcoin?). It very well could be much more common in
               | other parts of the, umm, anglosphere.
        
             | [deleted]
        
       | jtdev wrote:
       | I would wager a foolish sum that Colonial had a complete shit
       | security posture and had many opportunities to improve but chose
       | to accept this risk at the executive level. I have zero sympathy
       | for Colonial.
        
         | jtdev wrote:
         | LOL:
         | 
         | "Tech audit of Colonial Pipeline found 'glaring' problems"
         | 
         | https://apnews.com/article/va-state-wire-technology-business...
        
       | ThinkBeat wrote:
       | A far fetched scenario:
       | 
       | If I were these guys (I am glad I am not), You have just brought
       | down far more interest and heat from now just law enforcement but
       | probably at least a couple of intelligence services.
       | 
       | Arranging your own death would seem like a reasonable thing to
       | do.
       | 
       | All our money is gone, stolen. All our servers are gone, grabbed
       | by law enforcement. We have nothing left. Bye.
       | 
       | It would be interesting to follow the Bitcoins traversal around
       | the network.
        
         | adventured wrote:
         | Having done something so idiotic as inadvertently taking down
         | critical infrastructure for a superpower with global military &
         | espionage capabilities (that nearly all nations will cooperate
         | with) - the problem is, the people chasing you do not give a
         | shit about your money and whether it's gone, and they do not
         | care about your servers. Bye won't work, and faking your death
         | won't be believable. If you're these people, you're going to be
         | hunted to the ends of the planet and most likely they're
         | royally screwed with no way out (unless they're under the
         | direct protection of eg China or Russia).
        
       | kordlessagain wrote:
       | Like I said, unethical and unskilled losers.
        
       | goshx wrote:
       | So is everyone accepting this as truth? No suspicion of smokes
       | and mirrors?
        
       | 2wired wrote:
       | Lets not forget a lot of the images they were showing of plastic
       | bags in car trunks were stock photos from Mexican fuel smugglers
       | etc, media was used to fuel panic to protect the oil company, and
       | justify retaliation.
        
       | thysultan wrote:
       | A good old "i lost the electronic coins in a boating accident".
       | If nothing comes of this after this, this serves as a good proof
       | of concept.
        
       | SavantIdiot wrote:
       | Why should I believe this? They can shut down their servers, move
       | their crypto to different wallets, and pop up again in a few
       | weeks, right?
        
         | timdellinger wrote:
         | It's plausible that this is all a scheme to evade capture.
         | Disband the current organization, (get rid of a few people who
         | you've wanted to jettison anyway), and then set up shop afresh
         | elsewhere. It sends the message to whoever's looking for you
         | that the whole thing has been burned to the ground and there's
         | nothing to raid or seize or shut down.
        
           | bluGill wrote:
           | Possible, but there is too much a chance that the cops
           | already know who you are and just need to gather evidence in
           | a form they can take to court. By shutting down they ensure
           | that no more evidence is gathered. By starting a new
           | organization they can't be sure that they aren't still being
           | watched.
        
         | bluetwo wrote:
         | Depends if the DOJ issues arrest warrants for the members in a
         | couple weeks.
        
           | SavantIdiot wrote:
           | Since they aren't in the US, it is probably more of a
           | proactive step by the DOJ to build a case for sanctions.
           | Assuming they know what country the perps are from, which
           | doesn't seem all that clear.
        
             | bluGill wrote:
             | There are only a handful of countries that won't accept the
             | US arrest warrants and turn over whoever. A few countries
             | will demand something first, but this means no death
             | penalty, not something that is in anyway a big deal for the
             | other country. It is semi-routine for most countries to
             | capture and turn over criminals within the borders to
             | another country.
             | 
             | That is why people bring up Russia and North Korea. Those
             | are the two most likely countries that wouldn't. There are
             | a few others, but not many.
             | 
             | Even China which in general I wouldn't trust would in this
             | case. If China did an attack like this it would be much
             | more targeted and they wouldn't be looking for ransom money
             | - See the attacks on the Iran nuclear program for example:
             | attack a target that actually matters. (those attacks were
             | probably US or Israel, but it is the type of thing China
             | might do).
        
         | sfotm wrote:
         | I'm skeptical as well. They know they built up a little too
         | much notoriety and want to exit the game, is my guess. A core
         | set of people can live pretty comfortably off of the ransom
         | here, though they'll have a hard time laundering it.
        
         | stickfigure wrote:
         | Agreed, except why bother pop up again? They just got a big fat
         | payment of $5m. Plenty to split with a small team. It's a good
         | time to cash out and disappear.
        
           | SavantIdiot wrote:
           | Seriously! It's FIVE MILLION. That's "I don't ever have to
           | work again" money. What is wrong with people! Probably they
           | want Mercedes, and Rolexes, and Mont Blanc pens and all that
           | showy consumer garbage.
        
             | simias wrote:
             | $5million spread between an unknown number of people and
             | that need to be laundered before it's turned into Rolexes
             | and Mercedeses. Given the high risks it doesn't sound like
             | a great deal to me especially since competent hackers can
             | usually command a fairly high salary in legit companies.
        
             | colechristensen wrote:
             | The median lifetime earnings in the US is 1.7 million, and
             | that's equivalent to... $20 an hour or so. 5 million is
             | "never work again" money for a couple of people who want
             | middle class incomes the rest of their lives... it is not
             | really that much when spread over more than a few people.
        
               | stickfigure wrote:
               | These people likely do not live in the US. Also, how big
               | do you think the core team is? I would assume they're
               | freezing out anyone who can't identify the culprits.
        
               | showerst wrote:
               | Darkside is likely based in Russia, where lifetime median
               | earnings are much lower.
        
               | jandrese wrote:
               | They're also going to lose a big chunk of that to money
               | laundering losses. But since it is in Bitcoin it's
               | probably going to appreciate over time. The problem is
               | that if they fuck it up just once the record will be on
               | the blockchain forever and they'll never be safe.
        
         | specialp wrote:
         | They know that they can and will be found, and are running
         | scared. In general ransomware works because it takes a lot of
         | resources to find the criminals behind it. And generally
         | there's not enough resources to do this. But once it hits a
         | level where it creates a widespread national problem, it
         | becomes more of an act of war. Then you get people involved
         | that aren't just law enforcement and have tools that aren't
         | available to law enforcement with large budgets.
        
           | jl2718 wrote:
           | I don't understand how ransom ware works at all. The address
           | is known well in advance, so a miner knows they might face
           | sanction of their own coins for including it in their block.
           | Not worth it.
        
           | snypher wrote:
           | Running scared though? I see this as the dash from 2nd plate
           | to 3rd. If you're going to ditch your servers and wash your
           | coins you might as well make it seem like you were
           | compromised. I don't think there's any fear here as they
           | surely must have anticipated the consequences.
        
           | ttul wrote:
           | Not to mention diplomatic channels to apply pressure on local
           | governments that may have previously lacked the impetus to do
           | anything about these groups.
        
       | aazaa wrote:
       | > The crime gang announced it was closing up shop after its
       | servers were seized and someone drained the cryptocurrency from
       | an account the group uses to pay affiliates.
       | 
       | If so, this is either:
       | 
       | 1. one heckuva Mickey Mouse operation
       | 
       | 2. a smokescreen
       | 
       | The statement never mentions Bitcoin, but let's assume that this
       | is the "cryptocurrency" being referred to.
       | 
       | That Bitcoin private keys were being stored on a "server" strains
       | credulity. There's very little reason to do so, and every reason
       | not to.
       | 
       | Payments can be received and orders fulfilled by a server -
       | without private keys. Multiple addresses can be watched in read-
       | only mode.
       | 
       | The only reason for a server to hold private keys is if that
       | server is capable of making automated payments, and that
       | capability is a crucial part of the operation.
       | 
       | Bitcoin's history is littered with the corpses of people who
       | messed up the management of their own cryptographic keys. Any
       | reasonably competent operator would know about them and would
       | never, under any circumstances hold private keys on a server.
       | 
       | Which leaves Option 2. Smokescreen. Make it look like all the
       | loot was lost, try to throw investigators off the trail.
       | 
       | If so, it's a lame attempt.
       | 
       | One other possibility comes to mind. The ransom itself was the
       | smokescreen.
       | 
       | The amount of the ransom was nothing for a company the size of
       | Colonial. And it's about 1/10 of the annual salary of some
       | developers. Why risk the prospect of life in prison for such as
       | small payoff?
       | 
       | The reason is, of course, to make this operation look like
       | something it's not. A Mickey Mouse band of idiots who can't
       | manage their own private keys or servers. Lots of reasons to do
       | this, starting with the notion that the attackers are trying to
       | conceal their identities. And maybe that this was a test
       | operation. Throw in the trinkets of ransom to make it look
       | believable to the public.
        
         | KZZ wrote:
         | $5 million is 1/10 the annual salary of some developers?
        
           | [deleted]
        
           | CobsterLock wrote:
           | I could see 10 developers costing that much
        
             | kube-system wrote:
             | $500,000 salary? Let me know where these jobs are because
             | I'd like to submit my resume.
        
               | jandrese wrote:
               | More like a $250,000 salary + benefits. Medical coverage
               | is hideously expensive for example. Plus retirement,
               | dental, insurance, and taxes. Still a cushy salary for a
               | dev, but not completely out of the realm of reason.
        
               | simias wrote:
               | That's definitely a high salary except for the biggest
               | companies in the richest parts of the richest countries.
               | 
               | I do thin the parent's point still stands though, my
               | current salary is not nearly that high but you'd have to
               | pay me a lot more than $500k for me to risk hacking an
               | American pipeline. That's an insane amount of risk for a
               | few years worth of salary (that I'll probably have to be
               | very careful laundering if I don't want to raise
               | suspicions).
        
               | eganist wrote:
               | Senior/Staff developers/architects etc at FAANGs can
               | command as much or more. It's a routine topic of
               | conversation on hn. Netflix specifically is known for
               | paying much more of it as cash than the others.
               | 
               | https://www.levels.fyi/?compare=Amazon,Apple,Netflix,Goog
               | le,...
        
               | jorblumesea wrote:
               | For experienced seniors and principal/staff engineers,
               | this is pretty close if not below market rate. But
               | presumably most of these engineers are globally
               | distributed and 500k for eastern Europe is an immense
               | sum.
        
               | smabie wrote:
               | A 500k isn't all that unusual in tech I feel like..
               | 
               | Like a senior engineer at a FANG is probably making that
               | much or more all in.
               | 
               | Entry level salary for tier one firms across finance and
               | tech is probably around 250-300k. Not hard to get to 500k
               | with some experience.
        
               | kube-system wrote:
               | It is very, very unusual. Unusual even in California:
               | https://www.bls.gov/oes/current/oes151256.htm
        
         | vmception wrote:
         | Ironically, it plays off of ignorance in either option.
         | 
         | The DOJ could bolster credibility of itself to the ignorant by
         | saying "thats right criminals you cant hide" even if the DOJ
         | never got anything.
        
       | InfiniteRand wrote:
       | Anyone curious about who were the advertisers of a ransom ware
       | gang? Am I missing something?
        
       | justapassenger wrote:
       | Seems like they should invest more into cybersecurity, if someone
       | was able to "steal" their Bitcoin and take over their
       | infrastructure ;).
       | 
       | But honestly, this only shows that IT systems are nowadays so
       | complex that you cannot get them right and be able to truly
       | protect you, no matter if you're good or bad guy.
        
         | dkarras wrote:
         | I doubt anyone stole their bitcoins though. I assume they just
         | transferred it out themselves and will cash out later.
        
           | intrasight wrote:
           | I was thinking the same. But it would be hard to cover such a
           | conspiracy.
        
         | stadium wrote:
         | It just takes one agent or informant on the inside to bring the
         | whole house down.
        
           | intrasight wrote:
           | > takes one agent or informant
           | 
           | Only if that agent has the master keys. Strong security is
           | about making sure that there is no master key.
        
           | justapassenger wrote:
           | If you have single point of failure, either on technical or
           | human level, you aren't doing it correctly.
           | 
           | But it's really hard to build systems and organizations like
           | that.
        
         | breck wrote:
         | > like they should invest more into cybersecurity
         | 
         | I would say invest more thought, less money.
         | 
         | For example, use open source more. Minimize the amount of data
         | and information you have that needs to be closed source.
         | 
         | Avoid Windows. Use Gmail over Outlook. Have offline backups
         | with sneakernet disaster planning. Get a cheap safety deposit
         | box for storing keys. Use 2FA. There are lots of free/low cost
         | ways to have better security.
        
           | feu wrote:
           | > Use Gmail over Outlook.
           | 
           | Why would you recommend this? I can understand the reasoning
           | behind the rest of your recommendations, but not this one.
        
             | breck wrote:
             | AFAIK, Gmail has suffered on the order of 100x+ fewer
             | security incidents than Outlook. However, I am unclear on
             | the distinction between cloud Outlook and the
             | Exchange/Outlook combo. So me saying "Outlook" may be a
             | mistake, and the correct term may be Exchange.
        
           | justapassenger wrote:
           | It's not 2001 anymore. You can have both secure windows and
           | Linux infrastructure.
           | 
           | Telling people to just use Linux as a remedy doesn't help. If
           | you don't invest into securing your Windows infra, your Linux
           | infra will be also full of holes.
        
             | breck wrote:
             | In 2016, while I was still working at Microsoft, they gave
             | us cloud engineers a separate laptop for accessing customer
             | data (they called them SAWS, for Secure Access
             | Workstation), because they decided that our normal everyday
             | Windows 10 machines with root privileges could not be
             | trusted. This was in 2016, not 2001.
             | 
             | I do not think you can have secure Windows infrastructure
             | today. In the future, a few years after it's fully open
             | source, perhaps.
             | 
             | Of course you are free to make your own bets.
        
               | justapassenger wrote:
               | This sounds more like a policy decision. Any serious
               | company is heavily limiting how customer data is
               | accessed. Lots of them have special rooms, with heavy
               | physical security, where you cannot even bring electronic
               | watch, not even talking about your work phone or normal
               | work laptop. And those companies often run on Linux.
               | 
               | Open source doesn't make stuff magically secure. Remember
               | heartbleed? Or how easy it's was proven (by sketchy
               | research, sure, but that's secondary point) to bring
               | malicious code into THE open source project, Linux
               | kernel?
               | 
               | Believing that by simply using open source you have
               | secure infra, and that by using Windows is naive view by
               | people who never seriously worked on security for big
               | companies.
               | 
               | I say all of that as a heavy Linux supporter. Linux is
               | better, yes. But it's not a magic bullet. I've worked in
               | Windows shops that had extremely good security, and Linux
               | shops that could've been hacked by someone after one day
               | classes of how to be a hacker.
        
               | breck wrote:
               | Agreed that open source isn't perfect, but 99.999% secure
               | is still a lot better than 99.9% secure.
        
         | jakearmitage wrote:
         | https://xkcd.com/538/
        
       | purple_ferret wrote:
       | What exactly is a 'payment server' in terms of a crypto wallet?
       | 
       | Surely, they're not storing their bitcoin keys on some aws linux
       | box are they?
        
         | doomroot wrote:
         | With bitcoin you can produce infinitely many public
         | keys/addresses without your private keys ever touching an
         | internet device.
        
       | cirowrc wrote:
       | wouldn't be surprised if that's their version of "lost all my
       | crypto in a boating accident"
        
       | klyrs wrote:
       | > "There's too much publicity," the XSS administrator explained.
       | "Ransomware has gathered a critical mass of nonsense, bullshit,
       | hype, and fuss around it. The word 'ransomware' has been put on a
       | par with a number of unpleasant phenomena, such as geopolitical
       | tensions, extortion, and government-backed hacks. This word has
       | become dangerous and toxic."
       | 
       | I am... flabbergasted. _What?_ Ransomware has _always_ been a
       | brand of extortion; it 's right there in the name. _Extortion_
       | has become dangerous and toxic? You have got to be kidding me. I
       | wonder what 's next for these folks. A life of simple, honest,
       | pleasant and non-toxic crime?
        
         | jmkni wrote:
         | I actually laughed out loud reading this, _These guys are
         | giving ransomware a bad name_ , ahahaha, what?!
        
           | knolan wrote:
           | I read it as more of a "they've ruined it for the rest of us"
           | whinge.
        
             | ketzo wrote:
             | It's absolutely that, yeah. These guys were making fat
             | stacks licensing out their Ransomware-as-a-Service package;
             | now, since a customer flew too close to the sun/U.S.
             | government, they're fucked.
             | 
             | Tragedy of the commons? Sort of? Not really?
        
         | eganist wrote:
         | I'm interpreting the statement to mean that ransomware very
         | rapidly lost its reputation as a nuisance-crime this week.
         | 
         | Misplaced ransomware runs a far more substantial risk of
         | triggering enforcement action now. Or at least that's the
         | perception I'm deriving from the quote.
        
           | klyrs wrote:
           | Others seem to suspect that this is a ploy. It does kinda fit
           | the melodrama on display...
           | 
           | Otoh, as a kid I was into small-time mischief (pilfering
           | candy from teacher's desk kinda stuff). I had a good sense of
           | what would go unnoticed, but I was a bit too trusting of my
           | friends. They'd go overboard, get caught, and I'd take the
           | blame. So, I can sympathise with this a bit
           | 
           | Without external proof, I wouldn't hazard a guess as to which
           | it is
        
       | renewiltord wrote:
       | It actually sounds like what someone does when the mob boss is
       | coming after you. Your car catches fire and there's a charred
       | body inside with your watch on it. The money you took from him is
       | gone. It probably caught fire.
        
       | kossTKR wrote:
       | Can crypto actually be non-traceable? I remember currencies like
       | Monero or ZCash advertising privacy from the last crypto craze.
       | 
       | I mean if you have 100M in some account, can you actually run it
       | trough "private" currencies to remove traces? BTC, ETH etc. all
       | seems super traceable, even more so than in regular banking.
       | 
       | Also how are criminals getting their money out with no one
       | noticing, does Panama/Malta etc. have Kraken/Bittrex equivalents
       | with no questions asked?
        
         | andrepd wrote:
         | As far as I understand it, Monero (XMR) is private and
         | untraceable.
        
         | vmception wrote:
         | You dont do it that way. Just drop it in Tornado.cash and a few
         | days later withdraw to a virgin crypto address. The virgin
         | crypto address just pumps a token that you bought in another
         | clean address with clean money prior.
         | 
         | You sell the token in the clean address at a massive profit and
         | cash out under your real name and ID _and even pay taxes_.
         | 
         | Go look at any highly pumped token on
         | Uniswap/Sushiswap/Pancakeswap and you'll find plenty of
         | addresses that either bought or added to the liquidity pool
         | using funds that begin with Tornado.cash, there is no way to
         | distinguish the nature of the transaction from simple
         | observation. All blockchain technology is heading to parity
         | with the privacy afforded by traditional banking, without the
         | financial intermediary to question anything for the state.
        
           | intotheabyss wrote:
           | You could even send ETH to the Secret Network and perform
           | token swaps and then send it back to a clean address.
        
             | vmception wrote:
             | Yes, even better because the smart contract execution is
             | private and all the variables (receiver, quantity) are only
             | temporarily stored with the validator's SGX chips and not
             | onchain.
             | 
             | Less liquidity there, for now. Meaning the exits would more
             | likely be the same beneficial owner, but definitely an
             | additional route for liquidity.
             | 
             | Similarly, I think there should be a version of
             | Tornado.cash that stores notes in SGX and Secure Enclaves,
             | as enough devices have this now. (Although that forces only
             | one device to have the note. Instead of a transferable IOU)
             | 
             | How well does Keplr or Cosmos wallets work over Tor? Are
             | their any onion nodes that can resolve broadcasted
             | transactions?
        
               | vmception wrote:
               | Also note: I would still say having a record of trading
               | gains would still be better whether using an EVM+Tornado
               | or Secret Network, as this is much easier to account for
               | than never accounting for the obfuscated funds or trying
               | to further obfuscate and reintegrate with front
               | businesses
        
         | intotheabyss wrote:
         | ETH can be sent through tornado.cash or through zkDAI. Both of
         | these use zero knowledge proofs to break the link in the chain.
        
         | TwelveNights wrote:
         | One way I've seen discussed on HN is by sending varying amounts
         | to N different accounts, where some are owned by you /
         | affiliates and others are not. In a sense, paying for
         | obfuscation of which accounts are actually owned by you.
        
           | briffle wrote:
           | Until one of those people buys a Tesla with bitcoin (yeah, I
           | know they just stopped doing that) from a wallet that can be
           | traced to that payment, and then its just the authorities
           | following up the chain.
           | 
           | People like to seem like all these crypto's are totally
           | anonymous, but every transaction ends up in some sort of
           | public blockchain. So unless you have air-tight OPSEC and
           | people that will never talk, no matter what kind of jail time
           | they are facing, its always going to be traceable with enough
           | interest.
        
         | paulpauper wrote:
         | it can be harder to trace, but the bigger problem is trying to
         | turn it into cash, which is hard to do anonymously regardless
         | of the currency used (BTc, XMR, etc). THe FBI,Secret Service,
         | are mostly focused on the conversion of crypto to cash, not the
         | intermediary steps.
        
           | mwvr wrote:
           | doesn't work if the fiat converted to is in another
           | jurisdiction
        
             | adventured wrote:
             | There are few jurisdictions where the US Government can't
             | easily get at you, either physically or financially. China,
             | Venezuela, North Korea, Russia the list is super thin and
             | almost exclusively places you either don't want to be or
             | where you better be a protected local (otherwise they'll
             | just hang you out to dry for their own benefit or
             | amusement).
             | 
             | Most authorities around the world will want to nail you -
             | and or your money - in cooperation with the US authorities
             | (or otherwise for their own benefit). Once they know the US
             | wants you, you become a toy to be used to some end, you're
             | toast, your life is over.
        
               | sudosysgen wrote:
               | Don't forget Iran and Vietnam.
               | 
               | You don't need to live there for very long. Just for long
               | enough to cash out into fiat, launder the money, etc...
        
               | bluGill wrote:
               | Maybe. This isn't a political target though, this is
               | criminals wanting money. At most the governments gets a
               | bit of tax money: it just isn't worth it even before you
               | consider that the gangs who can pull this off may turn
               | against the governments. Governments may want the types
               | of people on staff who can pull off these attacks, but
               | they are careful on who gets targeted, and money isn't
               | the goal.
               | 
               | Vietnam doesn't like the US for historical reasons, but
               | overall they want to play on the world stage. Also US
               | relations have been thawing over the years. I'm inclined
               | to think they see it as to their advantage to help out.
               | 
               | Similar with China - they want the ability to get at the
               | US, but they are more likely to reserve it for something
               | that matters to them. Money doesn't really matter as much
               | as they get plenty sending the US cheap plastic toys.
               | Though if China declares war next week this could be
               | their first attack (highly unlikely, it is possible
               | though)
        
         | danlugo92 wrote:
         | One (of many) ways: Monero -> bitcoin -> localbitcoins with
         | stolen identity.
         | 
         | Each localbitcoins account can trade up to $200k a year without
         | any kind of in-person verification.
         | 
         | Also a lot of exchanges let you cash out via western union
         | so... you could theorically send yourself say 10k or 20k a a
         | month with that, there's no need to just withdraw it all at
         | once.
        
           | Kranar wrote:
           | There is no way to exchange Monero for Bitcoin or vice-versa
           | without the risk of being tracked. LocalBitcoins has been
           | doing KYC/AML since 2018.
        
             | TheAdamAndChe wrote:
             | Transactions between monero accounts can't be tracked, or
             | at least there's no evidence that they can be tracked.
        
             | stiltzkin wrote:
             | Atomic Swaps on Monero will be decentralized, no KYC.
        
           | intricatedetail wrote:
           | But if you get BTC through a mixer chances are they are
           | tainted and you get yourself in trouble when withdrawing.
        
         | Taek wrote:
         | Yeah Zcash provides good privacy for the most part, as long as
         | you use it correctly. Once you cash out, it's a typical money
         | laundering problem. How do you get money into circulation
         | without raising suspicions of where it came from?
         | 
         | Plenty of solutions. Mules using exchanges, buying NFTs from
         | yourself, "lucky" investment picks in low liquidity alts, etc
        
         | ikeboy wrote:
         | Yes, up to a limit.
         | 
         | It's super trivial to withdraw, say, 1M. You can use
         | https://tornado.cash/ to mix 100 ETH, there's currently around
         | 10k such deposits, so you could do that 2-3 times to move 1M in
         | ETH to an address that can't be tied to your previous
         | addresses.
         | 
         | It's possible but no longer trivial to withdraw 10M. You could
         | use the above method over a period of time, and some other
         | methods.
         | 
         | It becomes much more difficult at much higher values. You could
         | probably get 100M out disguised as trading profits or
         | something. If I spent a few days thinking about it I could
         | probably figure out ways to mix that much money on ETH, filter
         | through DeFi apps, etc. Seems doable.
         | 
         | You could also just work with large exchanges that don't care.
         | I don't know which ones are like that now, probably fewer than
         | years ago.
        
           | intotheabyss wrote:
           | You don't need to. You can send the ETH to tornado.cash.
           | Their anonymity set is such that 100 million would take a
           | long time, but on the order of months to withdraw.
           | Tornado.cash has millions in total locked value in different
           | ETH denominated pools.
        
             | ikeboy wrote:
             | Yeah I guess, as long as ETH stays around the current
             | level.
             | 
             | But if you do hundreds of withdrawals from tornado, it's
             | less anonymous, because the set of people that have
             | deposited that range to tornado is much smaller than the
             | set of people who did a handful of deposits. Instead of
             | 10k, you might be one of a few dozen or less.
             | 
             | You could always send a million to a friend (through
             | tornado) and have them cash out for a cut, and repeat that
             | 100 times, if you have 100 friends. That would kill on-
             | chain analysis.
        
               | skeeter2020 wrote:
               | The fact that everyone's first answer when prompted "how
               | do we wind down this huge pile of cryptocurrency?" is
               | convert it to fiat makes me skeptical on all the long-
               | term ambitions from promoters.
        
               | intotheabyss wrote:
               | Well you could take the ETH and stake in the beaconchain
               | and get 8% more ETH per year (depending on staking
               | rates). Or you could use the ETH to get a loan in DAI on
               | Compound or Maker. Or you cn buy synthetic assets like
               | stocks on Synthetix. Plenty of things to do in the
               | Ethereum ecosystem.
        
         | bruiseralmighty wrote:
         | Crypto currency itself can be completely anonymous, but the
         | difficulty is in the on-ramp and off-ramps to and from state
         | fiat money.
         | 
         | For example, I want to buy ZCash that is untraceable to me. I
         | need to exchange ownership of a hardware wallet (like a
         | physical USB device) for a pre-determined amount of state fiat,
         | lets say USD in this case. In order to facilitate this I need
         | to find a trusted seller, arrange a meeting, verify the actual
         | value of the physical wallet, and make the exchange. There are
         | non-physical means of making it _harder_ to trace state fiat
         | back to you, but not impossible. The state has simply had too
         | much influence over these places of transaction for too long
         | for anybody to be truly un-findable given a long enough period
         | of time.
         | 
         | Assuming I can find someone willing to on-ramp me like this I
         | will need to take steps to ensure that our communications are
         | encrypted and untraceable. This means not only do I need a
         | decentralized encrypted messaging service, I also need to
         | conduct this communication in a way that does not give away my
         | geographical location and is not vulnerable to security logs
         | (say by checking the cafe's video feed from the time I was
         | messaging my seller). Then I need to go to the meet, exchange
         | the physical wallet for cash, and verify the amount in it is
         | accurate (and also preferably not stolen). I need to do this
         | without revealing my identity to my seller and avoiding
         | security logs once again. This is all now possible whereas
         | before Satoshi it was impossible, but it is still difficult.
         | 
         | Alternatively, I could just sell some kind of digital asset in
         | exchange for ZCash to begin with. Now I do not have to worry
         | about an on-ramp. If I control my distribution server then I
         | can erase or encrypt my sales logs in order to prevent any
         | estimation of my total sales for the year.
         | 
         | Off-ramping is much harder. I either need to become a seller of
         | a physical wallet which has all the same problems that plagued
         | me before, or I need to live in an economy where off-ramping is
         | not required. This would be a physical location where all
         | transactions are conducted in secure, anonymize, cyrpto-
         | currency transactions. Similar to my earlier problem, this is
         | now possible but extremely difficult. An individual or a group
         | of individuals is going to have to bootstrap an entire local
         | economy.
         | 
         | Being localized is also an issue since there is nothing
         | preventing the USG from simply rolling in the tanks to break up
         | this localized tax haven.
        
         | generalizations wrote:
         | I think it's still just pseudo-anonymity, even for monero.
         | Which means, practically, that I don't think it would have done
         | more for these guys than just delay the seizure.
        
           | tryptophan wrote:
           | Nope. Monero is actually private and untraceable.
        
             | gowld wrote:
             | Is getting in and out of Monero private and untraceable?
        
             | jackson1442 wrote:
             | Until someone cracks it, that is. If it becomes the crypto
             | of choice for some of the bigger fish, you can bet the
             | government will find a way to trace it.
        
               | dougk16 wrote:
               | There is at least $625,000[1] on the table already. Not
               | to mention how many blockchain analytics companies and
               | other actors would pay millions to have such a
               | capability.
               | 
               | [1] https://www.forbes.com/sites/kellyphillipserb/2020/09
               | /14/irs...
        
               | jackson1442 wrote:
               | The main reason I bring this up is this is the same
               | promise Tor brought- "completely private" etc. And we all
               | know how that went down:
               | https://www.vice.com/en/article/4x3qnj/how-the-nsa-or-
               | anyone...
        
               | meowkit wrote:
               | I did a deep dive with a friend of mine (we're both OS
               | engineers) and its going to be a hell of a cookie to
               | crack.
               | 
               | There is a literal virtual tumbler built into the
               | transaction protocol called ring signatures.
               | 
               | Stealth addresses (an additional crypto key pair)
               | obfuscate senders and receivers.
               | 
               | They also hide the amount transferred which blew my mind.
        
               | ryanlol wrote:
               | >Until someone cracks it
               | 
               | This is certainly not a given. The government isn't going
               | to be cracking signal messages within any reasonable
               | timeframe either.
        
               | bluGill wrote:
               | There are ways to crack encryption that have nothing to
               | do with math. It doesn't matter how good your crypto is.
               | You could probably get by plain text as far as the FBI's
               | effort to crack your crypto are concerned as they won't
               | waste their time checking if you are that stupid.
        
               | 55555 wrote:
               | This doesn't really make sense. In the case of a criminal
               | laundering crypto, they don't know who the criminal is,
               | so the rubber hose attack doesn't work.
        
               | briffle wrote:
               | Obligitory XKCD: https://xkcd.com/538/
        
               | ryanlol wrote:
               | Rubberhose cryptanalysis does not work with Monero
               | because you don't know who to whack.
        
             | 2OEH8eoCRo0 wrote:
             | How many times are we going to learn that that's just not
             | true.
             | 
             | There is no safe, only shades of safer.
             | 
             | Is the mathematical underpinnings of Monero sound? That's a
             | good starting point. There are still implementation bugs,
             | compiler bugs, architecture bugs, supply chain
             | vulnerabilities, and state actors with unlimited $.
        
           | ur-whale wrote:
           | >I think it's still just pseudo-anonymity
           | 
           | Nope.
           | 
           | Monero, ZCash, and mimblewimble-based cryptos (grin, beam)
           | are certainly not pseudo-anonymous, and tracking is darn near
           | impossible if the users don't do anything stupid.
        
         | hanklazard wrote:
         | yes, with zksnark-based tech (zcash, zk.money, etc)
        
         | chowda wrote:
         | These groups will often use bitcoin tumblers/mixers to
         | anonymize their btc. This is a solid explanation
         | https://www.deepwebsiteslinks.com/wp-content/uploads/2017/10...
        
           | chrisBob wrote:
           | Is there a technical reason that makes use of a tumbler
           | legally safe? My concern would be that putting in a clean
           | bitcoin would result in me getting a fraction of a stolen
           | bitcoin and I would be receiving stolen property. The fact
           | that they are fully traceable means that it would be easy for
           | someone innocent to be caught up in something like that.
        
             | [deleted]
        
             | jandrese wrote:
             | That and you don't know if the tumbler you are using is
             | operated by the FBI.
        
       | normac2 wrote:
       | I'm interested to understand the psychology of ransomware types
       | who go after these enormous and important targets. That includes
       | the pipeline, which obviously claimed at least a few lives of its
       | own via people not being able to drive to get medical care, etc.
       | 
       | Are they armchair criminal masterminds who don't really have a
       | visceral understanding of how much damage they're doing? Or just
       | straight up psychopaths? I can't think of any other options.
        
         | notsureaboutpg wrote:
         | It is not obvious that this claimed any lives as fuel shortages
         | weren't really there because of the quick payment of ransom.
         | About 1% of gas stations in the Southeast ran out of fuel for
         | like a day.
         | 
         | By the standard you are applying almost everything can cost
         | lives.
        
         | Miner49er wrote:
         | They've learned from this, from the article:
         | 
         | "The REvil representative said its program was introducing new
         | restrictions on the kinds of organizations that affiliates
         | could hold for ransom, and that henceforth it would be
         | forbidden to attack those in the "social sector" (defined as
         | healthcare and educational institutions) and organizations in
         | the "gov-sector" (state) of any country. Affiliates also will
         | be required to get approval before infecting victims."
         | 
         | They aren't trying to cause this kind of harm.
         | 
         | Additionally: "DarkSide organizers also said they were
         | releasing decryption tools for all of the companies that have
         | been ransomed but which haven't yet paid."
         | 
         | This people have more morals then most rich businessman, IMO.
        
           | normac2 wrote:
           | Well, maybe they learned they did the wrong thing. Other
           | reasons seem plausible: maybe they just thought it would make
           | them look better if they're caught. Maybe they wanted to look
           | better to their clients/allies who are currently like "whoa
           | Nelly, these guys are basically Gus Fring. Maybe we'll work
           | with someone a little less evil."
           | 
           | I don't know nearly enough to guess, but it doesn't seem cut-
           | and-dried to me that this is a case of them realizing what
           | they did was wrong.
           | 
           | In any case, the same question still applies for what
           | happened _before_ : why were they in a psychological state
           | that made them try this in the first place?
           | 
           | Even if we grant that they've changed their tune for moral
           | reasons, that would rule out straight psychopaths, but would
           | include people who had severe antisocial traits but still
           | started to have some feelings about it once they saw the
           | real-life consequences. We see this with repentant murderers.
           | 
           | As far as rich businessmen who do evil stuff, there's a
           | literature on that, and it seems to be a complicated mix.
           | There's "just filling my role" (for those not at the very top
           | of their organizations), thinking you'd be replaced by
           | someone else doing the same thing, dissociation/denial about
           | what you're doing, and -- yeah -- straight up
           | antisocial/psychopath types. And more. It's a fascinating
           | topic.
        
       | ______- wrote:
       | Re-posted comment from a previous thread[0]
       | 
       | Still relevant
       | 
       | [0] https://news.ycombinator.com/item?id=27097966
       | 
       | ___________________
       | 
       | There is a theory floating about that some ransomware attacks
       | were done purely to damage a country's infra and making money was
       | a bonus, but not the main aim. So the perpetrators used
       | ransomware as a _front_ and the real goal is to destroy and
       | disrupt a country 's computer infra.
       | 
       | But then we could argue ransomware is just going to bolster and
       | make our systems antifragile and resilient against such attacks
       | in the future, so the ransomware attacks could backfire since in
       | the future it would be much harder to attack the US for example
       | with other types of malware.
       | 
       | It also means people are going to be storing mission critical and
       | crown-jewels type data in airgapped systems and making
       | filesystems read-only. The data would also be encrypted and
       | compartmented into separate containers so attacks can't affect
       | the whole filesystem if the airgap was breached.
        
       | hnnnnnnng wrote:
       | It's about time the NSA uses it's surveillance capabilities to
       | stop a ransomware attack.
        
       | lawnchair_larry wrote:
       | I think this is what you say when the heat is on you too badly.
       | They're trying to shed the target on their back.
        
       | vmception wrote:
       | Idiots. They have every arm-chair analyst saying "cryptocureency
       | is the cause of ransomware!" and they don't even use multisig to
       | leverage the cryptocurrency technology preventing that prevents
       | its unilateral seizure?
       | 
       | Looking forward to the day when someone proves there is nothing
       | the state can do. But for now we have to watch these
       | lackadaisical shit shows.
        
       | [deleted]
        
       | lamontcg wrote:
       | > "There's too much publicity," the XSS administrator explained.
       | "Ransomware has gathered a critical mass of nonsense, bullshit,
       | hype, and fuss around it. The word 'ransomware' has been put on a
       | par with a number of unpleasant phenomena, such as geopolitical
       | tensions, extortion, and government-backed hacks. This word has
       | become dangerous and toxic."
       | 
       | You've finally figured out that extortion is bad, well done.
        
       | karmasimida wrote:
       | They learned the hard lesson who is the boss. Fighting government
       | with military power is never a good idea, even if you are fully
       | prepared. The consequences would surely follow.
        
       | code-munkee wrote:
       | Critical Infrastructure Sectors as defined by CISA
       | 
       | https://www.cisa.gov/critical-infrastructure-sectors
       | 
       | Pretty easy to identify what is Critical Infrastructure.
       | 
       | The bigger reason for more coverage is optics. People take money
       | out of their wallet on a regular basis to pay for gas. Gas gets
       | them to their job, where they can then make more money to pay for
       | gas, food, and so on. If Gas is affected, their job, their
       | routine and their wallet is affected.
        
       | ur-whale wrote:
       | > Bitcoin stash seized
       | 
       | Just goes to show how unsophisticated they are and how low
       | ransomware game barrier of entry really is.
        
       | throwawaysea wrote:
       | If this is the US taking action, they should go after distributed
       | denial of secrets next (https://en.m.wikipedia.org/wiki/Distribut
       | ed_Denial_of_Secret...). This group is doxxing people for their
       | donations, which isn't "hacktivism" - it's just a criminal breach
       | of privacy. Crime doesn't become a non-crime just because it is
       | left-biased. Enough with the unchecked rise of cyber crimes.
        
         | kall wrote:
         | So they have a public representative living in the US and are
         | associated with Harvard University. I don't think there's much
         | shadowy cybercrime to investigate there.
         | 
         | How do you feel about Wikileaks and the prosecution of Julian
         | Assange?
        
           | throwawaysea wrote:
           | Having a "Harvard affiliation" doesn't legitimize illegal
           | activities. Leaking private messages, passwords, and so on
           | from social networks is an unacceptable breach of privacy.
           | Exposing people's private donations is also unacceptable.
           | This is a group looking to create a chilling effect on
           | others' speech, particularly moderates and conservatives,
           | through illegal cyber crimes. I am not sure how you can
           | possibly see that as anything other than "shadowy
           | cyberycrime" given their identities are anonymous and they're
           | committing cyber crimes.
        
             | kall wrote:
             | As far as I can tell from wikipedia they are not anonymous
             | (at least the leader) and not working in the shadows (bc
             | they are working together with serious public
             | organizations).
        
             | Miner49er wrote:
             | I don't think any of this is a crime?
        
       | jtchang wrote:
       | Just like the mob there are some targets that just aren't worth
       | it because they bring too much heat. They are learning this is
       | bad for business all around so they are stepping back and
       | encouraging others to do the same.
        
         | [deleted]
        
         | mywittyname wrote:
         | One thing that impressed me about this situation was the speed
         | at which this was dealt with. A few hours after the attack, an
         | executive order was signed reducing regulations around truck
         | transport of fuel. But the next day, service was being
         | restored. And by the end of the week, the attackers were
         | disbanded and their assets seized.
         | 
         | There's a pretty clear message here that the US isn't fucking
         | around.
        
           | wang_li wrote:
           | If I'd just collected enough ransom to retire and never work
           | again, I'd also put out a press release announcing I was out
           | of business and someone seized all my shit and etc.
        
             | hooande wrote:
             | Darkside was a legit business. They routinely collected
             | ransoms ten or twenty times larger than what they got from
             | Colonial. if they were going to retire, they would have
             | done it a long time ago
        
               | fuzzylightbulb wrote:
               | I can't find evidence of this "routinely collected
               | ransoms ten or twenty times larger than what they got
               | from Colonial" claim. Colonial is rumored to have paid
               | out ~$4mm. Every source about Darkside seems to cite a
               | "between $200,000 and $2 million for the file decryption
               | key" range. This would put the Colonial ransom far above
               | their typical payout.
        
               | snypher wrote:
               | Didn't Colonial pay $5m? I don't think Darkside ever
               | received a $50m-$100m ransom. Do you have any more
               | details?
        
         | ggggtez wrote:
         | This is it. Governments have cyber abilities that far outstrip
         | individual organizations. And when cyber fails, there are still
         | other diplomatic and _less diplomatic_ tools.
         | 
         | I wouldn't be surprised if the US Government here reached out
         | to foreign governments for assistance in dismantling their
         | infrastructure (it almost certainly was not on US soil).
         | 
         | An individual hospital probably couldn't garner that kind of
         | backing, but oil pipelines? The US would probably be willing to
         | use military strikes to keep the oil flowing. A small country
         | would be very willing to help out to maintain good will.
        
           | 3GuardLineups wrote:
           | yup. In popular parlance, "fucked around, found out"
        
           | bluGill wrote:
           | Small countries routinely help out for cases like this. I
           | expect the US has reached out to whatever ones were involved
           | long ago - it is just that until now things were still in the
           | evidence gathering stage. While the police are sometimes
           | willing to make an example of the wrong guy - that is the
           | exception - most of the time they try to be right which means
           | long investigations over many attacks.
        
       | 3pt14159 wrote:
       | Statements like "money of advertisers and founders was
       | transferred to an unknown account" don't make sense to me. Why is
       | the money held on a server at all? Surely it's more secure to
       | keep wallets receiving money locally on a laptop or in a paper
       | wallet, no? Why would they put the gold in the munitions depot if
       | they don't have to?
        
         | timdellinger wrote:
         | I'm seeing statements about the payments server and the money
         | associated with the payments server, but (at the risk of using
         | an analogy) it seems like they've lost their "petty cash" box,
         | not their main account. Surely they were wise enough to only
         | put a small amount of money in the payments server. The bulk of
         | their cash would be in a separate account (which wasn't lost).
        
           | 3pt14159 wrote:
           | Oh well then I take it these guys will be back in some form
           | or another in the coming weeks. With enough cash and time
           | they can replace their seized infrastructure without too much
           | effort. Probably with a non-American target next time. I
           | don't understand why so many hackers target America when the
           | USA has the strongest offensive cyber capabilities of any
           | nation on earth. Surely there is less blowback from hacking
           | an Argentinian pipeline.
        
       | tyingq wrote:
       | _" drained the cryptocurrency from an account the group uses to
       | pay affiliates"_
       | 
       | Some pretty good karma/irony there. They left wallet keys laying
       | around on a server.
        
       | Havoc wrote:
       | I'd love to know the behind the scenes on this.
       | 
       | Guessing the US leaned on some other country hard to confiscate
       | servers asap...
       | 
       | Loads of "bulletproof" hosting locations but don't think any can
       | withstand that kind of focused above national law type pressure
        
       | [deleted]
        
       | ipaddr wrote:
       | How do we know they haven't pulled another exit scam, Mt Gox
       | style?
        
       | johnvaluk wrote:
       | I'm having a hard time accepting the premise of this article.
       | Does it contain any verifiable facts?
        
       | coldcode wrote:
       | When I was doing anti-cheat stuff for a game company I was able
       | to leverage their attempts at avoiding being hacked by a third
       | party who kept stealing their cheats and reselling them. Even
       | criminals have criminals trying to steal from them.
        
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