Bitcoin’s price was down 8% in premarket trading Tuesday (June 8) after U.S. authorities announced that they have recovered the ransom paid to hackers that targeted the Colonial Pipeline.
American authorities were able to access the password for one of the Colonial Pipeline hackers’ Bitcoin wallet and seize $2.3 million in Bitcoin paid to DarkSide, the cybercriminal gang behind a crippling cyberattack on the Colonial Pipeline, which is one of the largest oil providers in the U.S.
Bitcoin, the world’s largest cryptocurrency, fell nearly 8% to a price of $32,952 on news of the ransom recovery. Smaller digital coins also slumped, with Ethereum falling 7% to $2,524.
The price of Bitcoin is now at about half the all-time high of $64,000 that it reached in April of this year. A recent plunge in cryptocurrency prices has shaken confidence in the market.
Bitcoin sank to nearly $30,000 in May before recovering a bit in recent weeks. Year-to-date, Bitcoin is now up 14%, though it has more than tripled in price from a year ago.
A number of issues are weighing on cryptocurrencies, including fears of a regulatory crackdown.
Chinese authorities last month called for a crackdown on cryptocurrency mining and trading. Once a major player in the market, China has since moved to stamp out speculative investments in cryptocurrencies, banning a fundraising method known as “initial coin offerings” and shuttering local cryptocurrency exchanges.