If it was illegal to pay the hackers back, and the Colonial Pipeline ransomware attack still happened, what would the options be? We'd have to turn the systems back on some way right?
Every ransom paid just funds and encourages the next hack. The social damage is deserving of a large fine (i.e. 10x the ransom).
"The decryption software provided by the hacking group DarkSide, notes Bloomberg, was reportedly 'so slow' that Colonial Pipeline 'continued using its own backups to help restore the system.'"
Source- https://mashable.com/article/colonial-pipeline-paid-bitcoin-...
Realistically, yes, the hack would still happen. Because there will never be a world where people don't pay ransoms, especially if they have no other options / backups.
> More importantly, would the hack have happened in first place if they knew there was no chance of being paid?
Why wouldn't it? They could easily been paid by another group to perform the hack, used the hack to manipulate stock prices, sold the stolen financial data, or, most likely, the ransom would have been paid indirectly though some other means, like hiring a "cyber security consultant."