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Binance Heist Triggers Alarm Among Banking Regulators

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Binance Heist Triggers Alarm Among Banking Regulators

Last week’s record hack of cryptocurrency exchange Binance prompted regulators in the United States to check in with the country’s banks, Reuters reported Thursday (Nov. 5), citing unnamed sources.

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Supervisors at the Federal Reserve and the Office of the Comptroller of the Currency reached out to banks at the beginning of the week to inquire about unusual activity or service disruptions, the report said.

One of the banks said there were no disruptions to its service, per the report. The bank’s employees had prepared talking points for customers, but they had received few questions related to the heist.

Banks have been studying the $6.3 billion Binance hack, thought to be the largest financial heist ever recorded, and are performing diagnostics to make sure they are ready to fend off similar attacks, according to the report.

Within hours of the hack, cybersecurity workers at one of the biggest U.S. banks reached out to their counterparts at Binance, the report said. That team is at work on an internal report that will lead to a review of the bank’s system and potentially upgraded cybersecurity. It is unclear if the bank would be vulnerable to similar tactics employed by the Binance hackers.

Binance said it was not aware of conversations between banks and regulators, and whether the heist had affected U.S. lenders, according to the report.

“We are in close contact with regulators all over the world, keeping them up to date on this security breach,” a Binance spokesperson said, per the report.


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