U.S. gov’t probes major ransomware incident involving cryptocurrency 

U.S. meat processing giant JBS SA was forced to stop its meat plant operations in the U.S. and Australia because of a ransomware attack on their systems. 

The latest incident highlights the risks that no one is safe from the rapid sophistication of cyberattacks, including large companies.

With the recent cyberattack on JBS, the U.S. government is concerned about the vulnerability of its citizens and large corporations from the highly remote yet totally devastating attacks. 

But apart from investigating the cyber intrusions, the authorities will also investigate the possible involvement of cryptocurrency in the recent ransomware attack.

Since cryptocurrency operations play by different rules (outside government scrutiny), the anonymity that it provides can possibly be used for illegal activities. 

Meme making the rounds

According to Marco Santori, chief legal officer of Kraken cryptocurrency exchange: “There’s this meme out there that crypto is unregulated and participants don’t engage with the government.” 

“It couldn’t just be further from the truth,” he added. 

Companies are highly discouraged by the authorities to pay a ransom when they are hit by a cyberattack because ransom payment is considered as direct cooperation from the criminals behind the crime. 

The U.S. Treasury Department made it clear that heavy penalties await companies that will bid to the cyber attacker’s request of ransom payments. 

Limited powers of U.S. authorities

The exchanges that process the payouts received by hackers usually operate abroad, which limits the U.S. government’s regulatory power. 

Clamors are increasing for a strengthened oversight on exchanges overseas, which are facing little to no regulatory standards from the U.S. government. 

Michael Daniel, a former Obama administration official, has said: “There are some responsibilities that come with being a responsible, mature currency in the world.” 

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/u-s-govt-probes-major-ransomware-incident-involving-cryptocurrency/