Ransomware operators in turmoil after Colonial Pipeline backlash
US authorities seize DarkSide’s assets while a widely-used cyber crime forum cuts ties with ransomware groups


The operators behind the ransomware attack that took down the Colonial Pipeline last week claim their infrastructure has been taken offline, and that they will cease their ransomware as a service (RaaS) programme.
Last week, DarkSide hackers attacked Colonial Pipeline, forcing the operator to suspend 5,500 miles of pipeline between Texas and New York and disrupting the fuel supply to large swathes of the US east coast. They also took 100GB of data from the network before locking computers and demanding payment in a double extortion attempt.
Amid reports that Colonial Pipeline paid the hackers $5 million (roughly £3.5 million) to restore data and services, DarkSide released a statement rowing back on the attack, expressing regret, and insisting the only motive was financial, not geopolitical.
The operators have now claimed they would immediately cease operations of their RaaS scheme, issuing decryptors to all targets they attacked, alongside the promise of compensation, according to Intel 471.
The group also shared a message with their affiliates claiming that a public portion of their infrastructure had been disrupted by an unnamed law enforcement agency. DarkSide’s name-and-shame blog, ransom collection site and breach data delivery network were all seized, while funds from their cryptocurrency wallet were siphoned away.
The backlash against the Colonial Pipeline attack has spread, with another prominent group, Babuk, also stepping down from ransomware. The group handed its ransomware source code to “another team” with the aim of continuing this work under a new brand, while Babuk would continue to run a name-and-shame blog.
Meanwhile, the administrators for XSS, a widely-used Russian cyber crime forum, have announced an immediate ban of all ransomware advertising and activity, with the promotion of services or related discussions also prohibited.
Get the ITPro daily newsletter
Sign up today and you will receive a free copy of our Future Focus 2025 report - the leading guidance on AI, cybersecurity and other IT challenges as per 700+ senior executives
An admin explained the decision by claiming there’s “too much PR”, and that the forum had “accumulated a critical mass of nonsense”, according to DataBreaches.net.
RELATED RESOURCE
2021 state of email security report: Ransomware on the rise
Securing the enterprise in the COVID world
Almost immediately after, another popular cyber crime site, Exploit.in, followed suit and announced that ransomware-related chatter and activity would be banned.
Several other highly prominent groups have reacted to the fallout by announcing rule changes to their organisation, effectively clamping down on the free reign that affiliates have had in the organisation they target.
REvil, for example, has banned affiliates from targeting government, healthcare, educational and charitable organisations. All targets must also be pre-approved by the ransomware operators prior to deployment.
“Intel 471 believes that all of these actions can be tied directly to the reaction related to the high-profile ransomware attacks covered by the media this week,” the firm said in a blog post. “However, a strong caveat should be applied to these developments: it’s likely that these ransomware operators are trying to retreat from the spotlight more than suddenly discovering the error of their ways.
“A number of the operators will most likely operate in their own close-knit groups, resurfacing under new names and updated ransomware variants. Additionally, the operators will have to find a new way to “wash” the cryptocurrency they earn from ransoms.”

Keumars Afifi-Sabet is a writer and editor that specialises in public sector, cyber security, and cloud computing. He first joined ITPro as a staff writer in April 2018 and eventually became its Features Editor. Although a regular contributor to other tech sites in the past, these days you will find Keumars on LiveScience, where he runs its Technology section.
-
Women show more team spirit when it comes to cybersecurity, yet they're still missing out on opportunities
News While they're more likely to believe that responsibility should be shared, women are less likely to get the necessary training
By Emma Woollacott
-
OpenAI's new GPT-4.1 models miss the mark on coding tasks
News OpenAI says its GPT-4.1 model family offers sizable improvements for coding, but tests show competitors still outperform it in key areas.
By Ross Kelly
-
‘Phishing kits are a force multiplier': Cheap cyber crime kits can be bought on the dark web for less than $25 – and experts warn it’s lowering the barrier of entry for amateur hackers
News Research from NordVPN shows phishing kits are now widely available on the dark web and via messaging apps like Telegram, and are often selling for less than $25.
By Emma Woollacott
-
Healthcare systems are rife with exploits — and ransomware gangs have noticed
News Nearly nine-in-ten healthcare organizations have medical devices that are vulnerable to exploits, and ransomware groups are taking notice.
By Nicole Kobie
-
Alleged LockBit developer extradited to the US
News A Russian-Israeli man has been extradited to the US amid accusations of being a key LockBit ransomware developer.
By Emma Woollacott
-
February was the worst month on record for ransomware attacks – and one threat group had a field day
News February 2025 was the worst month on record for the number of ransomware attacks, according to new research from Bitdefender.
By Emma Woollacott
-
CISA issues warning over Medusa ransomware after 300 victims from critical sectors impacted
News The Medusa ransomware as a Service operation compromised twice as many organizations at the start of 2025 compared to 2024
By Solomon Klappholz
-
Warning issued over prolific 'Ghost' ransomware group
News The Ghost ransomware group is known to act fast and exploit vulnerabilities in public-facing appliances
By Solomon Klappholz
-
The Zservers takedown is another big win for law enforcement
News LockBit has been dealt another blow by law enforcement after Dutch police took 127 of its servers offline
By Solomon Klappholz
-
There’s a new ransomware player on the scene: the ‘BlackLock’ group has become one of the most prolific operators in the cyber crime industry – and researchers warn it’s only going to get worse for potential victims
News Security experts have warned the BlackLock group could become the most active ransomware operator in 2025
By Solomon Klappholz