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Coinbase Says It Has Nothing To Do With DOJ’s Bitcoin Sequestration

Coinbase’s chief security officer has rejected suggestions that the US crypto exchange was involved in the seizure of crypto assets related to Colonial Pipeline’s latest ransomware attack.

CSO Philip Martin took to Twitter on June 8 to describe the company’s involvement or absence. The Department of Justice has a warrant for the seizure of Bitcoin.

“Coinbase is not the target of a warrant and does not receive any ransom or any portion of the ransom. We have no evidence that funds are flowing through Coinbase accounts/wallets.”

Official arrest story In which government officials were able to recover 63.7 BTC, which was about $2.3 million at the time. There are several abnormalities. Federal investigators claim to have obtained the Darkside Group’s private keys, but have not revealed how the FBI was able to command them.

according to the written testimony The private key for the subject’s address is in the possession of the FBI in Northern California. This led to a connection to Coinbase, which has local servers, as pointed out by a number of Twitter users. Martin denied these claims, stating:

“I have read as well. Because the arrest warrant identifies property in the Northern California area. It must therefore be targeted not by Coinbase. This likely means that the private key is located at one of the Northern California FBI field offices.”

He added that due to the exchange’s storage mechanisms, which use hot wallets, it “doesn’t make sense” to provide a unique private key.

Asked how investigators obtained the private key, he guessed, “Some good cops are working to find the target server,” followed by a request for a Mutual Legal Assistance Treaty (MLAT) and/or political pressure to access it.

Concerns have arisen about authorities’ ability to access encryption keys, which played a role in yesterday’s market slump. Lots of access to personal information that same day The report details a fake, encrypted communication app used by criminals secretly operated by the FBI to secretly collect messages. personal information and to monitor broader criminal activities

In a June 8 newsletter, Quantum Economics founder and former senior market analyst at eToro Mati Greenspan said the recoverable ransom was Indeed, it is bullish for Bitcoin as many expect US politicians to use crypto as a scapegoat for attacks and enforce some strict rules

“But they know what we already know. that the authorities will be easier to catch criminals using crypto than anything else.”

Greenspan added, “The only valid explanation for the price drop is that the market is random. Especially in the short term.” At the time of writing, BTC is trading 2.2% lower in the past 24 hours at $33,000 after falling more than 10% since the start of the week.

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