South Florida city agrees to pay hackers 65 bitcoin

A city in Florida has decided to pay-out nearly $600,000 worth of bitcoin to hackers who jeopardized its computer systems at the end of May, according to a report by The New York Times. 

Riviera Beach, a 35,000-person city north of West Palm Beach, agreed during a city council meeting Monday to pay the hackers to restore its computer networks, which were crippled by an email virus. It is the latest type of extortion of a municipality, which typically rely on out-dated technology, according to the report. 

“The complexity and severity of these ransomware attacks just continues to increase,” Jason Rebholz, a principal for Moxfive, told The New York Times. As per the report, Rebholz says hackers are increasingly targeting municipalities. 

“The sophistication of these threat actors is increasing faster than many organizations and cities are able to keep pace with.”

Atlanta, Newark, and Sarasota are among the other cities that have recently been hit by such schemes, according to CBS News

About Author

Frank Chaparro covers the intersection of financial markets and cryptocurrency as Editor-at-Large. Since joining the publication in 2018 as its first reporter, he has played a key role in building The Block into a leader in financial journalism and research. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected]

More by Frank Chaparro