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How the FBI Hacked Hive and Saved Victims

Hive conducted more than 1,500 attacks worldwide, resulting in the collection of approximately $100 million in cryptocurrency from the victims.
Earlier this year, the FBI achieved a significant milestone by dismantling Hive, a notorious cybercrime group, employing an unconventional approach. Instead of apprehending individuals, the agency focused on outsmarting and disrupting the hackers remotely. This marks a notable shift in the FBI's strategy to combat cybercrime, recognizing the challenges posed by international borders where many cybercriminals operate beyond the jurisdiction of U.S. law enforcement. 

In the past, Hive gained infamy as a highly active criminal syndicate, renowned for its acts of disrupting American schools, businesses, and healthcare institutions by disabling their networks and subsequently demanding ransoms for restoration. However, FBI field agents based in Florida successfully dismantled the group using their cyber expertise. 

They initially gained unauthorized access to Hive's network in July 2022 and subsequently countered the syndicate's extortion activities by aiding the targeted organizations in independently regaining access to their systems. 

According to Adam Hickey, a former Deputy Assistant Attorney General in the Justice Department's national security division during the Hive operation, the FBI's method proved effective and saved victims worldwide approximately $130 million. After conducting thorough investigations, the FBI discovered that Hive had rented its primary attack servers from a Los Angeles data center. 

Acting swiftly, the FBI seized the servers within two weeks and subsequently announced the takedown. This rapid action was motivated by the agency's recognition of an opportunity to halt Hive's activities, which had previously been difficult to preempt. However, while the announcement marked a significant milestone, Special Agent Smith and Director Crenshaw emphasized that the case is far from over. 

Hickey, who is now a partner at Mayer Brown law firm, stated that relying solely on arrests to combat cyber threats would be an oversimplified approach. He emphasized the need for a broader perspective and alternative strategies to address the evolving cyber threat landscape. 

The FBI initially became aware of Hive in July 2021 when the group, which was still relatively unknown at the time, targeted and encrypted the computer network of an undisclosed organization in Florida. This occurred during a period when prominent ransomware groups were carrying out severe attacks on gas pipelines and meat processors in the United States. 

In the following 18 months, Hive conducted more than 1,500 attacks worldwide, resulting in the collection of approximately $100 million in cryptocurrency from the victims, as estimated by U.S. law enforcement. The group's rapid expansion can be attributed, in part, to its strategic utilization of ruthlessness as a catalyst for growth. 

They targeted organizations, including hospitals and healthcare providers, that other cybercriminals had refrained from attacking. Data gathered by researcher Allan Liska, reveals that despite the FBI's covert presence within Hive, the group continued to carry out attacks at a consistent rate. 

On a hidden website where Hive disclosed the identities and sensitive details of victims who refused to pay, they listed seven victims in August, eight in September, seven in October, nine in November, and 14 in December. These numbers remained similar to the group's attack patterns before the FBI's infiltration. 

Hive members are still at large, and the seized servers could potentially aid in exposing the network of affiliates who collaborated with Hive during the 18-month period. As a result, the takedown has the potential to lead to additional arrests in the future.
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