[Bitcoin Now] FBI Unlocks Hacker Wallet... Security Concerns Lead to Drop to 38 Million KRW Range

Bitcoin with security and anonymity advantages... Password found through reverse hacking
Coinbase "Institutional investors' Bitcoin holdings nearly triple"

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The representative cryptocurrency Bitcoin has fallen to the 38 million KRW range. The U.S. Federal Bureau of Investigation (FBI) cracking the password of hackers' cryptocurrency wallets who attacked a pipeline operator has led to security concerns, acting as a negative factor.

According to the domestic cryptocurrency exchange Upbit, as of 8:19 a.m. on the 9th, Bitcoin recorded 38.55 million KRW, down 1.30% compared to the previous day. On the same day at 12:24 a.m., it dropped to 36.36 million KRW, marking the lowest price since February 3.

Concerns over cryptocurrency security had an adverse effect. According to U.S. economic media CNBC on the 8th (local time), the FBI cracked the password of Russian hackers' cryptocurrency wallets and recovered 63.7 Bitcoins. This amounts to about 2.5 billion KRW. Earlier, on the 7th of last month, pipeline operator Colonial Pipeline was hit by a ransomware attack and paid about 4.4 million USD (approximately 4.9 billion KRW) as demanded by the hackers. Afterwards, the FBI cooperated with Colonial Pipeline to track the Bitcoins taken by the hackers and found the wallet password through counter-hacking. CNBC explained, "With the Bitcoin wallet being cracked, concerns about security have increased."

There have been criticisms that Bitcoin does not guarantee security and anonymity from the beginning. This means Bitcoin's advantages do not function at all. Jo Joo-bin, the operator of the infamous nth room case last year, received payments for pornography sales in cryptocurrencies such as Bitcoin, Ethereum, and Monero to avoid investigation authorities' tracking. However, if the transactions go through domestic exchanges, cryptocurrency transaction records can be traced, making recovery possible. The Seoul Metropolitan Police Agency preserved 11 of Jo Joo-bin's cryptocurrency wallets and 0.1 other cryptocurrencies.

Meanwhile, the largest U.S. cryptocurrency exchange Coinbase announced that institutional Bitcoin holdings significantly increased in the first quarter of this year. According to U.S. economic media Business Insider on the 8th, Coinbase stated that institutional investors' cryptocurrency holdings rose from 45 billion USD at the end of last year to 122 billion USD at the end of March this year. It is known that major U.S. investment banks such as Goldman Sachs and BlackRock are included among the institutional investors. Drew Robinson, Coinbase's hedge fund sales manager, explained, "Institutional investors invested in cryptocurrencies to hedge against inflation risks, diversify corporate financial structures, and participate in the digital economy."