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May 9, 2021executivecybersecuritycritical infrastructureenergy securityransomwareexecutiveeconomic

DarkSide ransomware shuts down Colonial Pipeline Biden declares emergency

The DarkSide ransomware group hacks Colonial Pipeline, the largest refined fuel pipeline in the US, forcing the company to shut down 5,500 miles of pipeline supplying nearly half the East Coast's gasoline and jet fuel. Biden declares a state of emergency on May 9, temporarily waiving limits on fuel transport by road. Colonial Pipeline pays $4.4 million in Bitcoin ransom without government authorization. Fuel panic-buying causes widespread gas shortages across the Southeast. Biden says Russia "has some responsibility" since DarkSide operates from Russian territory, though he finds no evidence of Kremlin involvement. The DOJ later recovers 63.7 Bitcoin ($2.3 million) of the ransom.