Security News > 2021 > June > Pipeline CEO Defends Paying Ransom Amid Cyberattack
A pipeline company CEO on Tuesday defended his decisions to abruptly halt fuel distribution for much of the East Coast and pay millions to a criminal gang in Russia as he faced down one of the most disruptive ransomware attacks in U.S. history.
Colonial Pipeline CEO Joseph Blount said he had no choice, telling senators uneasy with his actions that he feared far worse consequences given the uncertainty the company was confronting as the attack unfolded last month.
His testimony to the Senate Homeland Security Committee on the May 7 cyberattack provided a rare window into the dilemma faced by the private sector amid a storm of ransomware attacks in which overseas hackers breach a company's network and encrypt their data, demanding a ransom to release it back to them.
Last month, the administration issued new regulations for the pipeline industry, requiring companies to conduct cybersecurity assessments and immediately report any breaches to the federal government.
"The ransomware attack on Colonial Pipeline affected millions of Americans," said Sen. Gary Peters, a Michigan Democrat.
Blount said the Georgia-based company began negotiating with the hackers on the evening of the May 7 attack and paid a ransom of 75 bitcoin - then valued at roughly $4.4 million - the following day.