May 27 (UPI) — Federal prosecutors are suing the University of California, alleging civil rights violations were committed in connection with pro-Palestinian campus protests, the latest lawsuit by the Trump administration, which has targeted universities over issues from antisemitism to their hiring practices.
The Trump administration has taken dozens of actions against higher education institutions, including investigations, lawsuits and funding freezes, in what critics describe as an effort to crack down on left-leaning ideology in public and private spaces.
The lawsuit, filed Tuesday in the Western District of California, focuses on the encampment erected on the University of California, Los Angeles, campus in April 2024 as pro-Palestinian protests erupted across U.S. universities against Israel’s war in Gaza as students sought to pressure their schools to divest from Israel.
Federal prosecutors allege the school failed to protect its Jewish and Israeli students through its inaction concerning the encampment, which was erected April 25, 2024, and torn down May 2, 2024, when the school permitted police to clear the campus of protesters.
“Universities have an obligation to maintain safe and inclusive campuses for all students,” First Assistant U.S. Attorney Bill Essayli of the Central District of California said in a statement.
“Universities that violate our nation’s civil rights laws by repeatedly failing to shield Jewish students from antisemitism will be held accountable.”
The lawsuit is similar to the one federal prosecutors filed against UCLA in February, accusing the institution of creating a hostile work environment for Israeli and Jewish faculty and staff over its inaction with regard to the encampment.
UCLA Chancellor Julio Frenk on Tuesday rejected the accusations.
“Let me be direct: The suggestion that UCLA has been passive in the face of antisemitism is simply wrong. Combating antisemitism is a moral imperative — one rooted, for me, in personal history that makes indifference unthinkable,” he said in a statement.
Frenk highlighted a series of actions the school has taken over the past year, from recruiting an associate vice chancellor for campus and community safety to reorganizing its civil rights office, as proof of the school’s commitment to stand against antisemitism.
The Justice Department is seeking a court declaration that UCLA unlawfully discriminated against Jewish and Israeli students, an order forcing it to institute a series of changes and a declaration that the federal government does not need to make additional grant payments to the university.
Earlier this month, the Justice Department announced the results of an investigation into UCLA’s medical school admissions process, saying it discriminated by race to favor Black and Hispanic applicants.
Critics have accused the Trump administration of using the Justice Department to crack down on disfavored speech and ideology.
In April 2025, more than 200 college and university leaders issued a joint statement condemning the actions of the Trump administration targeting higher education institutions as “unprecedented government overreach and political interference.”
WASHINGTON — Senate Republicans appeared increasingly unlikely to meet their self-imposed deadline for passing a roughly $70-billion immigration enforcement bill this week as disputes over security funding for the White House and the Trump administration’s $1.8-trillion settlement fund effectively derailed progress.
Republicans were already expected to abandon $1 billion in security money for the White House complex and President Trump’s ballroom amid backlash from members of their own party. But then questions about the settlement fund added to some of the senator’s concerns. They are questioning who would get the money.
Republican senators met with acting Atty. Gen. Todd Blanche on Thursday as they worked to finalize the bill’s text and whether to put parameters on the settlement, which was designed to compensate Trump’s allies who believe they have been politically persecuted. Sen. John Thune (R-S.D.) told reporters that senators had questions and wanted to know “how we might make sure that it’s fenced in appropriately.”
But senators who emerged from the meeting were tight-lipped and indicated that lawmakers would not hold a vote on the package before leaving Washington for a Memorial Day break, risking failure to meet Trump’s June 1 deadline.
Asked about a vote this week, Sen. Susan Collins (R-Maine) responded, “I don’t even know.” Sen. John Kennedy (R-La.) was more blunt: “We’re going home,” he said.
The last-minute scramble comes as Democrats have criticized Republicans for trying to fund Trump’s ballroom when voters are concerned about basic affordability issues — and as some GOP lawmakers have grown increasingly frustrated with Trump. Several GOP senators have spoken out against the settlement, which was announced this week, and many were upset by the president’s endorsement Tuesday of Texas Atty. Gen. Ken Paxton in the party primary runoff next week against Sen. John Cornyn.
Asked Thursday at the White House if he was losing control of the Senate, Trump replied: “I don’t know, I really don’t know. I can tell you — I only do what’s right.”
The “anti-weaponization” fund, part of a settlement that resolves Trump’s lawsuit against the IRS over the leak of his tax returns, unexpectedly became one of the main complications in the bill. Democrats said they would force votes to block it or place restrictions on it.
Democrats have an opening because Republicans are trying to pass the immigration enforcement bill through a complicated budget process that requires a long series of amendment votes. Democrats are considering multiple amendments, potentially to block that new fund outright or to ban any payments to Trump supporters who harmed law enforcement officers in the Jan. 6, 2021, attack on the Capitol.
Presenting a united front, Democrats from both the House and Senate rallied on the Capitol steps Thursday to show their opposition. Senate Democratic leader Chuck Schumer of New York said the amendment process “will give Republicans countless chances to do the right thing.”
He added that if they declined to make changes, it would show voters that “Ballroom Republicans are not working for you, they are busy fighting for Trump.”
Those amendments, along with others, could pass as a growing number of Republicans have voiced reservations about the fund. So Republicans are now discussing their own last-minute additions to head that off, potentially placing some parameters on the settlement and who could receive compensation, according to two people with knowledge of the private discussions who requested anonymity to discuss them.
It was unclear how any Senate changes would be received in the House. House Speaker Mike Johnson (R-La.) said Wednesday that the House will pass the bill “whatever form it takes.”
As Republicans challenged the settlement and parts of his agenda, Trump unloaded on the Senate in a social media post on Wednesday.
He urged Republicans to fire the Senate parliamentarian, Elizabeth MacDonough, who said over the weekend that parts of the $1-billion security proposal cannot remain in the ICE and Border Patrol bill. Trump also renewed his long-standing calls for the Senate to pass the SAVE Act, a Republican bill that would require all voters to prove U.S. citizenship, and to end the Senate filibuster.
Republicans need to “get smart and tough,” Trump said, or “you’ll all be looking for a job much sooner than you thought possible!”
While they have been loyal to Trump on most issues, Senate Republicans have resisted his repeated calls — even in his first term — to kill the filibuster, which triggers a 60-vote threshold in the Senate.
Hanging over the growing GOP rift is Trump’s surprise endorsement of Paxton. That intervention has Republican senators privately fuming that it could cost them their majority in November as they view the incumbent, Cornyn, as the better candidate in the November general election.
Under the Secret Service’s request, about $220 million would fund security improvements related to the ballroom. The rest would go for a new screening center for visitors, training and other security measures.
Sen. Thom Tillis (R-N.C.) said the effort to add the security package to the bill was a “bad idea.” The bill should not have included the other security improvements, he said, “because it’s just giving everybody the ‘billion-dollar ballroom.’”
Several other Republicans in the House and Senate have questioned the request, and senators left a briefing with the director of the Secret Service last week saying they needed a lot more information.
People “can’t afford groceries and gasoline and healthcare, and we’re going to do a billion dollars for a ballroom?” asked Louisiana Sen. Bill Cassidy, who lost reelection in his GOP primary on Saturday after Trump endorsed one of his opponents.
Left in the bill is the money for ICE and Border Patrol, which Democrats have blocked for months in protest of the administration’s immigration enforcement crackdown.
Democrats demanded changes for the agencies, but negotiations with the White House yielded little progress. So Republicans are using the complicated budget maneuver called reconciliation — the same process that allowed them to pass Trump’s tax and spending cuts bill last year — to fund the agencies through the end of Trump’s term with a simple majority and no Democratic votes.
Still, passage requires sign-off from the parliamentarian and unity from Republicans.
Jalonick, Freking and Groves write for the Associated Press. AP writers Collin Binkley, Lisa Mascaro and Joey Cappelletti contributed to this report.
The U.S. Department of Justice filed a motion to drop fraud charges against Gautam Adani, chair and founder of Adani Group. File Photo by Divyakant Solanki/EPA
May 19 (UPI) — The U.S. Department of Justice announced it will drop criminal fraud charges against billionaire Indian businessman Gautam Adani.
The Justice Department submitted a motion Monday asking a federal judge to drop the indictment from 2024 brought by the U.S. Attorney’s Office in Brooklyn, N.Y. The request said the department “reviewed this case and has decided, in its prosecutorial discretion, not to devote further resources to these criminal charges against individual defendants,” NBC News reported the court filing said.
Principal Associate Deputy Attorney General Trent McCotter and Brooklyn U.S. Attorney Joseph Nocella signed the filing. Prosecutors assigned to the case were not included.
Separately, the President Donald Trump administration announced it had reached a $275 million settlement with a company founded by Adani over “egregious” apparent violations of U.S. sanctions against Iran, Politico reported.
According to the U.S. Office of Foreign Assets Control, Adani Enterprises Limited bought $191 million worth of shipments of liquefied petroleum gas from a Dubai-based trader. OFAC alleged the company overlooked indications that the gas originated from Iran, Politico said.
Adani is the founder and chair of the Adani Group, a conglomerate based in Ahmedabad, India. Brooklyn prosecutors charged him and others in a fraud and bribery scheme in November 2024, while President Joe Biden was in office.
Adani’s lawyers from Sullivan & Cromwell included two of Trump’s personal attorneys: Robert Giuffra Jr. and James McDonald, Politico reported.
Adani’s worth is estimated at more than $100 billion. He is one of the richest people in Asia, and is an ally of Indian Prime Minister Narendra Modi.
Prosecutors alleged that Adani and his co-defendants paid $250 million in bribes to Indian government officials. The bribes were to help Adani Green Energy, a subsidiary, win approval to create India’s largest solar power plant. It was projected to bring $2 billion in profits over 20 years.
They also alleged the defendants defrauded American and international investors by gaining funds “on the basis of false and misleading statements.”
Adani Group denied the allegations and called them “baseless.”
PROVIDENCE, R.I. — A federal judge has blocked the Trump administration’s sweeping demands for confidential transgender patient information from Rhode Island’s largest hospital that provides gender-affirming care to minors.
U.S. District Judge Mary McElroy’s Wednesday ruling is the latest setback for the U.S. Department of Justice, where at least seven other federal courts have agreed to quash or limit the expansive civil subpoenas sent to more than 20 doctors and hospitals last summer.
McElroy’s decision also echoed similar concerns raised by judges surrounding the expansive scope of the subpoenas, describing the Justice Department as having “immense prosecutorial authority and discretion” but no longer trustworthy it will enforce its power fairly and honestly.
“DOJ has proven unworthy of this trust at every point in this case,” McElroy wrote.
A Justice Department spokesperson said Thursday that it would appeal and continue with its investigations.
“The Rhode Island court’s attack on the professionalism and integrity of DOJ attorneys is outrageous and unjustified,” the department said.
According to the subpoenas, the Justice Department had demanded Rhode Island Hospital hand over the birth dates, Social Security numbers and addresses of every patient who received transgender care over the past five years. It also included instructions to provide all documents detailing adverse side effects in minor patients who received gender-related care, assessments that formed the basis for prescribing puberty blockers or hormone therapy, as well as patient intake forms and guardian authorization.
The Justice Department has repeatedly argued that the information sought in the subpoenas is needed to investigate possible fraud or unlawful off-label promotion of drugs. Most recently during a hearing in Rhode Island, the DOJ said that the investigation was taking place in the Northern District of Texas, where the court’s chief judge ordered Rhode Island Hospital to comply with the subpoena before McElroy’s decision voided the subpoena.
Assistant U.S. Atty. Brantley Mayers told McElroy during the hearing that the Justice Department is investigating potential “misbranding” of drugs approved by the U.S. Food and Drug Administration, such as puberty blockers for young people. While off-label prescribing is legal, Mayers said that the DOJ is concerned that pharmaceutical companies are providing “financial incentives” to Rhode Island doctors to prescribe the drugs.
The subpoenas were crucial in getting the names of children and their families so the Justice Department could interview them.
McElroy rejected that argument.
“The administration has publicly characterized gender-affirming care for minors as abuse, directed the DOJ to bring its practice to an end, and celebrated when hospitals curtailed such programs as a result of this subpoena campaign,” McElroy wrote.
The Rhode Island decision is the latest development in the fight over transgender youth health records. Earlier this week, 11 families filed a class-action lawsuit seeking to block the Justice Department from obtaining the documents. The lawsuit, filed in Maryland’s federal court, is backed by families with transgender children who have received care from hospitals across the U.S.
And separately, a New York hospital announced that it received a grand jury subpoena from federal prosecutors in Texas seeking information about children who received gender-affirming care and the medical providers who administered it.
NYU Langone is the first hospital system to publicly acknowledge receiving a subpoena for such records as part of a federal criminal investigation. But the institution said in its statement Tuesday it was one of several that received a subpoena out of the Northern District of Texas on May 7. It said it was deciding on how to respond.
“The government cannot use its subpoena power to intimidate families out of seeking lawful medical care. To trans and gender-diverse children and their families, we want you to know that you are valued, you are not alone,” Kevin Love Hubbard, an attorney with the Lawyers’ Committee of Rhode Island, who represented the plaintiffs in the case, said in a statement.
Gender-affirming care includes a range of medical and mental health services to support a person’s gender identity, including when it’s different from the sex they were assigned at birth. It may include counseling, medications that block puberty, hormone therapy to produce physical changes or surgeries to transform chests and genitals, although those are rare for minors.
Most major medical groups say access to the treatment is important for those with gender dysphoria and see gender as existing along a spectrum.
At least 27 states have adopted laws restricting or banning the care for minors, while several others have adopted laws or policies protecting access to transgender healthcare.
Kruesi writes for the Associated Press.
The Justice Department on Wednesday filed a lawsuit seeking to nullify D.C. disbarment proceedings against Jeffrey Clark, seen here in October 2020 as acting assistant U.S. attorney general. File Photo by Yuri Gripas/EPA-EFE
May 13 (UPI) — The Justice Department filed a lawsuit Wednesday evening against D.C. disciplinary officials who recommended Jeffrey Clark be disbarred over his efforts to overturn 2020 election results, the latest move by the Trump administration to defend allies accused of helping President Donald Trump remain in power after that election loss.
The lawsuit in a federal court in D.C. alleges the disciplinary officials used their powers to punish lawyers over what federal prosecutors describe as “internal Executive Branch deliberations” in order to regulate federal government actions.
“Weaponizing state bar discipline against Executive Branch attorneys in this way chills them from giving candid legal advice to others in the Executive Branch, including the president and attorney general,” the lawsuit states.
“To permit these proceedings is to allow state bar authorities to control the Executive Branch. That is not the law.”
Clark was an assistant attorney general at the Justice Department following Trump’s 2020 election loss to Joe Biden, and urged Justice Department officials to issue a letter he wrote casting doubt on election results, according to congressional investigators and D.C. disciplinary officials.
The letter specifically targeted the results in Georgia, a swing state Trump lost to Biden by 11,779 votes, alleging a Justice Department investigation had uncovered election “irregularities” despite Attorney General William Barr having already announced there was no evidence of outcome-determinative fraud in the election prior to his resignation.
Clark had prepared the letter to be signed by Barr’s replacement, then-acting Attorney General Jeffrey Rosen, and Principal Associate Deputy Attorney General Richard Donoghue, the second highest-ranking Justice Department lawyer, both of whom refused because they knew its contents were untrue.
Clark continued to push for the Justice Department to issue the letter, which he intended to be used as a template to be sent to other states. Amid the political turmoil, Trump considered appointing Clark as attorney general — a move Clark encouraged so he could launch nationwide investigations to uncover unfounded claims of election issues.
Trump abandoned the idea of appointing Clark only after being informed doing so would cause mass resignations among Justice Department leadership.
The D.C. Office of Disciplinary Counsel opened its investigation into Clark’s actions after Sen. Dick Durbin, as then-chairman of the committee, asked it to probe his “serious violations of professional conduct.”
The D.C. Court of Appeals Board on Professional Responsibility in July recommended that Clark be disbarred in D.C., stating that “when a lawyer attempts to make intentional false statements on an issue that the lawyer understands to be a ‘pressing matter of overriding national importance,’ or knowing that the false statement would have serious and far-ranging consequences, they deserve the ultimate sanction.”
A final judgment has not yet been issued in the case.
The Justice Department on Wednesday asked the court to quash the D.C. disciplinary proceedings against Clark, and alleged they violate the Supremacy Clause and Article II of the Constitution by arguing that Clark was acting as a federal government employee who cannot be punished for performing Executive Branch duties.
Federal prosecutors also frame the issue as involving internal discussions. They said Clark attempted to persuade his superiors to issue a draft letter “that he felt reflected the actual law and facts about the 2020 election.”
“D.C. disciplinary authorities may not punish a United States official for disagreeing with a superior or coworker or for sharing an opinion just because those disciplinary authorities disagree with it,” the filing states.
Acting Attorney General Todd Blanche also accused the D.C. Bar of being “a blatantly partisan arm of leftist causes,” accusing it of being weaponized.
“The D.C. Bar will no longer be permitted to probe sensitive Executive Branch deliberations and target Executive Branch officials with whom they happen to politically disagree, and federal attorneys will once again be free to share their candid legal advice with their bosses and colleagues,” he said in a statement.
Clark was never charged in federal court in connection with his role in the alleged scheme, but he, Trump and 17 others were indicted in Georgia on racketeering charges. The case was dismissed after the prosecutor appointed following Fulton County District Attorney Fani Willis’ removal declined to pursue the charges.
Other Trump allies accused of aiding his efforts to overturn the 2020 election have also been sanctioned in D.C., including Rudy Giuliani, who was disbarred in D.C. and New York, and John Eastman, whose D.C. law license was suspended on an interim basis after he was disbarred in California.
Wednesday’s lawsuit is the latest action by the federal government aiding those who supported Trump’s false election claims.
On Trump’s first day in office, he issued clemency to the roughly 1,500 people charged or convicted in the Jan. 6, 2021, insurrection.
He also issued pardons to Giuliani, Eastman, Clark, Sidney Powell and many others accused of aiding his efforts.
Justin Sullivan
PayPal (PYPL) will waive about $30M in transaction processing fees to settle a Department of Justice probe into what the agency called a “DEI Investment Program” that was created to support minority-owned businesses.
The waiver will apply to eligible small
May 1 (UPI) — Federal prosecutors are suing New Jersey for offering qualifying noncitizen residents in-state college tuition and state-funded benefits, the latest state the Trump administration has accused of discriminating against out-of-state Americans in its anti-immigration crackdown.
The Justice Department has brought nine lawsuits challenging states’ laws often called Dream Acts, which generally offer noncitizens who have lived in and attended high school in the state for several years the same college tuition that citizen residents are charged.
The Justice Department filed its lawsuit Thursday, asking the court to block New Jersey from enforcing two laws: one passed in 2013 that offers in-state tuition to eligible noncitizen residents, and another passed in 2018 that extends their eligibility to state financial aid programs and scholarships.
Federal prosecutors alleged in the lawsuit that the laws “blatantly discriminate in favor of illegal aliens over U.S. citizens from other states” and violate federal law, which bars states from offering postsecondary education benefits based on residency to people unlawfully present in the country unless U.S. citizens are eligible for the same benefits.
“Imagine being denied the opportunity of education in our own country. By granting illegal aliens in-state tuition, the state of New Jersey is doing just that,” Associate Attorney General Stanley Woodward said in a statement.
The lawsuit comes as the Trump administration carries out an aggressive anti-immigration policy that has included mass round-ups of noncitizens to revoking deportation protections for those from war- or catastrophe-torn nations.
Almost exactly a year ago, President Donald Trump signed the “Protecting American Communities from Criminal Aliens” executive order, which directed the attorney general to identify laws “favoring aliens over any groups of American citizens,” including state laws “that provide in-state higher education tuition to aliens but not to out-of-state American citizens.”
Of the nine lawsuits challenging these Dream Act laws to date, Texas, Kentucky and Oklahoma have resolved their cases either through agreements, consent decrees or joint motions.
Lawsuits are still pending in Illinois, Minnesota, Virginia, Nebraska, California and now New Jersey.
According to the Higher Ed Immigration Portal, 21 states and Washington, D.C., provide in-state tuition to undocumented students, while 18 and D.C. also provide access to state financial aid.
April 26 (UPI) — The Trump administration asked the National Trust for Historic Preservation on Sunday to end its legal challenge to President Donald Trump‘s ballroom following Saturday’s arrest at the White House Correspondents’ Association Dinner, saying its lawsuit “puts the lives of the president, his family and staff at grave risk.”
“Enough is enough. Your client should voluntarily dismiss this frivolous lawsuit today in light of last night’s assassination attempt on President Trump,” Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division said in a letter to the National Trust for Historic Preservation’s lawyers.
Cole Tomas Allen, 31, of Torrance, Calif., was arrested Saturday night at the annual White House Correspondents’ Association Dinner hosted at the Washington Hilton Hotel with Trump, his family, members of his Cabinet and many others in attendance.
U.S. Secret Service agents apprehended the suspect — armed with a shotgun, a handgun and knives — who allegedly rushed a Secret Service checkpoint in the hotel’s lobby, authorities said.
Law enforcement and the suspect exchanged gunfire, resulting in an agent sustaining an injury when shot in the bullet-resistant vest. The injured agent and the suspect, who was not struck by gunfire, were transported to a local hospital for treatment.
Trump has been locked in a monthslong legal battle with the preservation organization over his plans to construct a $400 million donor-paid ballroom where the East Wing of the White House once stood.
The National Trust for Historic Preservation argues that the Trump administration needs congressional approval for the project and its financing mechanism, while the Justice Department argues the project is legally authorized and that, now that construction has begun, completing it is necessary for the security and the safety of the president.
A federal judge has sided with the preservation organization, ruling that Trump needs congressional approval for the plan to proceed. After the judge earlier this month permitted only below-ground construction for security purposes, the D.C. Circuit issued an administrative stay allowing the project to continue while the government’s appeal proceeds, with oral arguments scheduled for June 5.
Calls of support from the White House and Republicans have increased following Saturday’s incident, with Trump stating in a press conference that night, “We need the ballroom.”
In his letter on Sunday, Shumate said the ballroom would mean the president would no longer need to leave the White House to attend large gatherings.
He said the National Trust for Historic Preservation has until 9 a.m. Monday to dismiss the lawsuit or the Justice Department will move to dismiss the case “in light of last night’s extraordinary events” and state that the preservation organization opposes the motion.
UPI has asked the National Trust for Historic Preservation for comment.
WASHINGTON — The Justice Department recovered $2.3 million in cryptocurrency ransom that Colonial Pipeline paid to hackers whose cyberattack last month shut down its major East Coast pipeline, leading to gas shortages up and down the East Coast, authorities said.
Deputy Atty. Gen. Lisa Monaco said the FBI on Monday seized the majority of the ransom that Colonial Pipeline paid to hackers who used malware developed by DarkSide, a Russia-linked hacking group, to encrypt and lock up the company’s computer systems. The company, which Monaco credited with quickly alerting the FBI to the attack, said it paid the hackers $4.4 million in bitcoin to regain access to its systems.
“Today we turned the tables on DarkSide,” Monaco said, calling such ransomware attacks an “epidemic” that poses a “national security and economic threat” to the U.S. “This was an attack against some of our most critical infrastructure.”
Though the malware did not affect systems that operate the company’s pipelines, which stretch from New Jersey to Texas, Colonial discovered the hack on May 7 and closed its spigots for five days out of an abundance of caution. The pipeline supplies about 45% of the jet fuel, gasoline and heating oil consumed on the East Coast, and the shutdown sparked panic from drivers, who raced to top off tanks, leading gas stations to run out of fuel.
The Justice Department did not disclose how much Colonial paid in ransom, but the company’s chief executive told the Wall Street Journal last month that it made a $4.4-million payment in bitcoin. Colonial CEO Joseph Blount said the company paid the extortion demand because he was concerned a prolonged disruption of the pipeline would hurt the nation.
“I know that’s a highly controversial decision,” Blount told the newspaper. “I didn’t make it lightly. I will admit that I wasn’t comfortable seeing money go out the door to people like this.”
Ransomware hackers typically trick unwitting employees into opening an email and clicking on an attachment or a link, which then infects computer servers with malware that encrypts data and locks the systems. Victims must pay a ransom to the hackers to obtain a decryption key to unlock and recover the information. DarkSide’s malware poses a double whammy — it can also siphon out information, giving hackers more leverage because they can threaten to disclose sensitive data if they are not paid.
FBI Deputy Director Paul Abbate said DarkSide produces ransomware that it sells to hackers who conduct cyberattacks and share a percentage of their proceeds with the malware’s developers. DarkSide’s product is one of about 100 ransomware variants the FBI is investigating, Abbate said.
The bureau has been investigating DarkSide since last year, Abbate said, and has identified more than 90 victims of its ransomware in manufacturing, legal, insurance and healthcare industries. Working with other U.S. government agencies, the FBI identified “a virtual currency wallet” that the DarkSide hackers were using to collect payment from a victim, Abbate said.
The Justice Department then obtained a warrant to seize those bitcoins, officials said.
“The old adage ‘follow the money’ still applies,” said Monaco, the deputy attorney general. “That’s exactly what we do.”
The Colonial Pipeline attack was the latest in a series of ransomware assaults that has crippled government agencies, hospitals and businesses, including a major meat producer that was forced last week to idle plants, sparking concerns about potential increases in meat prices and shortages. A task force of more than 60 experts from industry, government and nonprofits issued a report in April that calls ransomware “a flourishing criminal industry that not only risks the personal and financial security of individuals, but also threatens national security and human life.”
The report, published by the nonprofit Institute for Security and Technology, estimates that nearly 2,400 governments, healthcare facilities and schools were victims of ransomware attacks last year. Ransom payments rose to $350 million last year, a 300% increase over 2019, the report says. The average such payment topped $300,000.
Cybersecurity experts and former federal prosecutors and agents blamed several trends for the increase. The rise of difficult-to-trace cryptocurrency has made it far easier for criminal gangs to collect payments, the experts said. Cybercriminals have also begun to increasingly operate within the borders of U.S. adversaries, particularly Russia. The Kremlin, for example, allows hackers to operate with impunity if they do not target Russian businesses or citizens and focus their energy on sowing chaos and confusion in the West.
The Biden administration is seeking to find ways to combat the rise. President Biden said he will discuss ransomware attacks this week with U.S. allies during a European trip, and bring up the subject during a June 16 meeting with Russian President Vladimir Putin. The Justice Department has launched a task force to better coordinate its approach to the crime wave. Justice Department officials said the Colonial Pipeline ransom seizure was the first such payment recovery by the task force. Justice Department officials could not say how many other ransoms they have recovered.
“This is a big deal,” said Scott Jasper, a lecturer at the Naval Postgraduate School and author of “Russian Cyber Operations: Coding the Boundaries of Conflict.” “The question is: Will this be big enough to change the behavior of DarkSide or of other cyber actors? It’s too early to tell. It’s a slow game, a long-term game. This is a significant, big business. This is a big enterprise.”