UCSF pays 116.4 BTC ransomware demand after NetWalker attack
University of California San Francisco pays $1.14 million Bitcoin ransom after Netwalker ransomware attack compromises COVID research systems.
On June 12, 2020, UCSF pays 116.4 BTC ransomware demand after NetWalker attack. University of California San Francisco pays $1.14 million Bitcoin ransom after Netwalker ransomware attack compromises COVID research systems.
The attack and subsequent Bitcoin payment highlighted both the dark side of cryptocurrency's utility and the ongoing challenge of ransomware attacks that leveraged Bitcoin's pseudonymity and irreversibility. Netwalker had researched UCSF's finances before the attack, understanding that a major research university with billions in annual revenue could afford substantial ransoms and might be especially motivated to pay given the critical nature of their COVID-19 research.
The university's decision to pay was controversial—security experts generally recommend against paying ransoms because it encourages additional attacks and funds criminal enterprises, but organizations facing the loss of critical data or system downtime that could cost more than the ransom often conclude that payment is the least bad option.
The UCSF incident exemplified a persistent challenge for Bitcoin's reputation and adoption. Ransom ware attackers preferred Bitcoin for payments because it could be transferred quickly across international borders without requiring bank accounts or payment processors that might block transactions or cooperate with law enforcement.