The pipeline network operated by Colonial Pipeline carries gasoline, diesel, and jet fuel from Texas to New York. About 45% of all fuel consumed on the East Coast arrives via the pipeline system. The attack occurred amid rising concerns about the vulnerability of critical infrastructure to cyberattacks, following several high-profile incidents, such as the 2020 SolarWinds hack, which affected multiple U.S. federal government agencies, including the Departments of Defense, Treasury, State, and Homeland Security.
The attack primarily targeted the company's billing infrastructure. However, the oil pumping systems remained operational. According to CNN sources within the company, the inability to bill customers was cited as the reason for halting pipeline operations. Colonial Pipeline reported shutting down the pipeline as a precaution, citing concerns that hackers might have accessed information enabling further attacks on vulnerable infrastructure. The day after the attack, Colonial Pipeline stated it could not confirm when the pipeline would resume normal operations. The attackers stole nearly 100 gigabytes of data and threatened to release it online if the ransom was not paid. Reports indicated that within hours of the attack, the company paid a ransom of nearly 75 Bitcoins ($4.4 million USD) in exchange for a decryption tool. However, the tool was reportedly slow, and the company's business continuity measures proved more effective in restoring operations.
On May 9, Colonial stated they planned to substantially repair and restore the pipeline's operations by the end of the week.
Experts have stated that the attacks were preventable but that essential protective measures were not in place. Although the East Coast gasoline shortage and Darkside's receipt of the ransom had significant consequences, they were not the most critical implications of the incident. The broader concern was the cybersecurity vulnerabilities and their potential impact on critical infrastructure in the United States.
Biden signed Executive Order 14028 on May 12, increasing software security standards for sales to the government, tighten detection and security on existing systems, improve information sharing and training, establish a Cyber Safety Review Board, and improve incident response. The United States Department of Justice also convened a cybersecurity task force to increase prosecutions.
The Department of State issued a statement that a $10,000,000 reward would be given out in case of information leading to the arrest of DarkSide members.
DarkSide released a statement on May 9 that did not directly mention the attack, but claimed that "our goal is to make money, and not creating problems for society."
The restart of pipeline operations began at 5 p.m. on May 12, ending a six-day shutdown, although Colonial Pipeline Company warned that it could take several more days for service to return to normal. The pipeline company stated that several markets that are served by the pipeline may experience, or continue to experience, intermittent service interruptions during the restart. The company also stated that they would move as much gasoline, diesel and jet fuel as safely possible until markets return to normal. All Colonial Pipeline systems and operations had returned to normal by May 15. After the shutdown, the average national price of gasoline rose to the highest it had been in over six years, to about an average of US$3.04 a gallon on May 18. The price increase was more pronounced in the southern states, with prices rising between 9 and 16 cents in the Carolinas, Tennessee, Virginia, and Georgia. Around 10,600 gas stations were still without gas as of May 18.
Biden said on May 10 that though there was no evidence that the Russian government was responsible for the attack, there was evidence that the DarkSide group is in Russia, and that thus, Russian authorities "have some responsibility to deal with this". Independent cybersecurity researchers have also stated the hacking group is Russian as their malware avoids encrypting files in a system where the language is set to Russian.
The U.S. Department of Justice issued a press release on June 7, 2021, stating that it had seized 63.7 Bitcoins from the original ransom payment. The value of the recovered Bitcoins was only $2.3 million, because the trading price of Bitcoin had fallen since the date of the ransom payment. Through possession of the private key of the ransom account, the FBI was able to retrieve the Bitcoin, though it did not disclose how it obtained the private key.
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