The U.S. Department of Justice said today it has recovered $2.3 million worth of Bitcoin that Colonial Pipeline paid to ransomware extortionists last month.
The funds had been sent to DarkSide, a ransomware-as-a-service syndicate that disbanded after a May 14 farewell message to affiliates saying its Internet servers and cryptocurrency stash were seized by unknown law enforcement entities.
On May 7, the DarkSide ransomware gang sprang its attack against Colonial, which ultimately paid 75 Bitcoin (~$4.4 million) to its tormentors. The company said the attackers only hit its business IT networks — not its pipeline security and safety systems — but that it shut the pipeline down anyway as a precaution [several publications noted Colonial shut down its pipeline because its billing system was impacted, and it had no way to get paid].
On or around May 14, the DarkSide representative on several Russian-language cybercrime forums posted a message saying the group was calling it quits.
“Servers were seized, money of advertisers and founders was transferred to an unknown account,” read the farewell message. “Hosting support, apart from information ‘at the request of law enforcement agencies,’ does not provide any other information.”
Many security experts said they suspected DarkSide was just laying low for a while thanks to the heat from the Colonial attack, and that the group would re-emerge under a new banner in the coming months. And while that may be true, the seizure announced today by the DOJ certainly supports the DarkSide administrator’s claims that their closure was involuntary.