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Security concerns about the security of the Bitcoin network were the most prominent reason behind the decline of Bitcoin!

Source: https://bit.ly/3iq8GzJ

It is well known and recognized that the blockchain network is not amenable to falsification or modification of transactions.

Bitcoin and other cryptocurrencies rely on blockchain technology for transactions and authentication.

Recently, many security concerns related to the Bitcoin blockchain have emerged, especially after the US Federal Bureau of Investigation (FBI) gained access to a hacker’s Bitcoin wallet.

Here are the details…

On Monday, June 7, the US Department of Justice and the FBI managed to seize $2.3 million from a hacker group called “Darkside” that it obtained as ransom money after hacking into Colonial.

The hackers had hacked Colonial’s computers last month in May 2021, causing a huge fuel shortage and high prices.

On Monday, the Justice Department said it was able to recover half of the total $4.4 million that was paid as ransom.

Herein lies the concerns.

It is interesting how the FBI gained access to the private keys of the hacker’s wallet, as this is still a mystery.

The US Department of Justice says it already has a password to the bitcoin wallet where the hackers sent the money.

FBI Deputy Director Paul Abate told:

There is no place beyond the reach of the FBI to hide illicit funds that will prevent us from imposing risks and consequences on malicious cyber actors.

Deputy Attorney General of the US Department of Justice, Lisa O Monaco, added that they have all the tools to track the flow of money.

The FBI’s moves have certainly raised doubts about the security of the Bitcoin network.

The question many followers are asking here is:

Do the FBI and other security agencies have access to the private keys of Bitcoin wallets?

As a result of these concerns, the price of Bitcoin has fallen by 10%.

At the time of writing, Bitcoin is trading at $33,283 levels.

The famous crypto analyst with the name, “Mr. Whale” on Twitter that we can’t call this FUD.

This analyst believes that the seizure of a bitcoin wallet by the FBI raised serious security concerns that led to this price crash.

The same analyst also notes that the Bitcoin network uses the same security algorithm – SHA 2 – designed by the National Security Agency.

What tools the FBI used:

An affidavit from an FBI agent shows that the security agency used Blockchain Explorer software that allows its users to search blockchains such as the Bitcoin blockchain to provide additional information about the amount and destination of transactions.

The affidavit indicates that this was mainly to find out the different bitcoin addresses that “Darkside” hackers use to launder ransom money.

The FBI told the FBI that it was able to access one of the bitcoin addresses containing 63.5 bitcoins.

He told the same FBI spokesperson that, fortunately, the FBI had the key to that address, but he didn’t explain how.

This certainly raised serious doubts about whether the Bitcoin network is well secured and how a third party, even the FBI, could easily gain access to the private keys of a wallet.

Blockstream CEO Explanation:

Adam Buck told Blockstream CEO on Twitter that the FBI got the money back without hacking the wallet because that’s not possible.

No Bitcoin wallet has been hacked, and it is not yet known, that this is possible.

He told Buck that the hacker rented a cloud server to hold the bitcoin they received as ransom after the attack on the Colonial Corporation (a major East Coast pipeline) that happened in May.

The FBI and the Department of Justice took control of the server and confiscated the cryptocurrency in it.

After the FBI obtained a subpoena and seized it and recovered the cryptocurrencies, and this is what happened without media exaggerations.

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