After US$6.3 Billion Binance Hack, US Regulators Quiz Banks on Their Cyber Defences

US regulators have contacted banks to ask whether their systems have any vulnerabilities following last week's US$6.3 billion ($9 billion) hack of crypto exchange Binance. Supervisors from the Federal Reserve and the Office of the Comptroller of the Currency began reaching out on Monday morning, asking about any unusual activity or disruption to services, according to several sources familiar with the matter. The hack is believed to be the largest financial heist in history.

One bank source said there were no disruptions to its services, and that staff prepared talking points for customers but have received few inquiries. Banks are studying the attack and running diagnostics on their own systems to prepare for a similar incident. Within hours of the hack, a cybersecurity team at one of the largest US banks contacted counterparts at Binance. That bank is preparing an internal report that will lead to a systems review and possibly security updates, though it is not yet clear whether it would be vulnerable to the tactics the attackers used.

Binance said it was unaware of the conversations between bankers and regulators, and of any impact on US banks. It said it is in close contact with regulators worldwide. One source said a big concern is that artificial intelligence models are evolving quickly, making it hard for banks to keep pace with hackers. The regulatory outreach comes as links between crypto and traditional finance have tightened, with US regulators having eased the way for banks to become more active in crypto markets.