Coinbase’s Chief Security Officer, Philip Martin, has disproved suggestions that the US crypto exchange was involved in crypto asset seizures in connection with the recent Colonial Pipeline ransomware attack..
June 8th Philip Martin took to Twitter to explain the company’s involvement (or lack of it) in the Justice Department’s order to seize Bitcoin..
– Coinbase was not the target of the order and has never received the ransom or any part of it. We also have no evidence that the funds flowed through a Coinbase account / wallet.
1 / I’ve seen many false claims that Coinbase was involved in the recent DOJ seizure of Bitcoin in connection with the Colonial Pipeline ransomware attack. We weren’t a thread:
to???? Philip Martin (@SecurityGuyPhil) June 8, 2021
The official history of the seizure, in which government officials recovered 63.7 BTC, valued at around $ 2.3 million at the time, included a number of irregularities. Federal investigators claimed to have obtained the Darkside group’s private keys but did not disclose how the FBI managed to confiscate them..
The #BitcoinsRansomware / Darkside / Colonial Pipeline Co. related went through the California servers of @coinbaseAnd the American investigators probably confiscated it there.
Neither your keys nor your 63.7 #BTC. pic.twitter.com/4RwZLFww5c
to???? This is bullish (@thisisbullish) June 8, 2021
According to the affidavit, the private key to the subject’s address was held by the FBI in the Northern District of California. This led to the connection with Coinbase which has servers in the area, What? they pointed it outÂ Multiple Twitter users. Martin refuted these claims, stating:
“I also read that the seizure order had to be addressed to Coinbase as it specified a property in the Northern District of California. It’s not like this. What it probably means is that the private key is in one of the many FBI field offices in Northern California. ”
He added, Due to the exchange’s storage mechanisms using a pooled online wallet, it would “not make much sense” to pass a specific private key.
When asked how the investigators got the private key, he assumed that “locating the target servers was good police work”.followed by a MLAT application and / or political pressure to gain access.
Concerns about the authorities’ ability to access cryptographic keys influenced yesterday’s market crash. However, Authorities have a variety of innovative ways to access private information. On the same day, Reports surfaced describing a fraudulent encrypted communications app used by criminals that the FBI was clandestinely operating to covertly gather messages and private information and monitor large-scale criminal activity.
In a June 8 newsletter, the founder of Quantum Economics and former senior market analyst at eToro, Mati Greenspan stated that the restored bailout is actually good for Bitcoin as many U.S. politicians expected to use cryptocurrencies as a scapegoat for the attack and enforce some stubborn regulations..
Instead, they realized what we already knew: that it is easier for authorities to trap criminals with cryptocurrencies than with anything else. “
Greenspan added that the “only valid explanation for falling prices is that markets are random, especially in the short term”.. At the time of writing, BTC’s price was trading 2.2% to $ 33,000 in the past 24 hours after falling more than 10% since the start of the week.