Official says US seized ransom made to Colonial Pipeline hackers

Author: ERIC TUCKER, Associated Press Writer: Derrick Shaw
Published:
FILE – In this Sept. 8, 2008 file photo traffic on I-95 passes oil storage tanks owned by the Colonial Pipeline Company in Linden, N.J. A major pipeline that transports fuels along the East Coast says it had to stop operations because it was the victim of a cyberattack. Colonial Pipeline said in a statement late Friday that it “took certain systems offline to contain the threat, which has temporarily halted all pipeline operations, and affected some of our IT systems.” (AP Photo/Mark Lennihan, File)

The U.S. government has seized millions of dollars in a cryptocurrency payment made to hackers after a cyberattack that caused the operator of the nation’s largest fuel pipeline to halt its operations last month, a law enforcement official said Monday.

FBI and Justice Department officials were to disclose the operation at a news conference later Monday. The official was not authorized to discuss the news ahead of the news conference and spoke on condition of anonymity.

Georgia-based Colonial Pipeline, which supplies roughly half the fuel consumed on the East Coast, temporarily shut down its operations on May 7 after a gang of criminal hackers known as DarkSide broke into its computer system.

Colonial officials have said they took their pipeline system offline before the attack could spread to its operating system, and decided to pay a roughly $4.4 million ransom in an effort to bring itself back online as soon as it could.

The FBI generally discourages the payment of ransom, fearing it could encourage additional hacks.

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