NEW YORK: US regulators contacted banks after the $6.3 billion Binance hack to check for possible security vulnerabilities and service disruptions, people familiar with the inquiries told Reuters.
Supervisors from the Federal Reserve and the Office of the Comptroller of the Currency (OCC) began approaching lenders on Monday.
They asked whether banks had detected unusual activity or service interruptions. One bank contacted by regulators experienced no disruptions, a person familiar with the matter said.
Its employees prepared talking points for customers but received few inquiries. Other financial institutions have begun reviewing their cybersecurity systems to identify weaknesses that hackers could exploit.
At one major US bank, a cybersecurity team contacted Binance shortly after the attack. The team is preparing an internal assessment that could lead to further security checks and software updates.
Binance said it was unaware of discussions between banking supervisors and financial institutions. It could not confirm whether the breach had affected US banks.
“We are in close contact with regulators all over the world,” a Binance spokesperson said. The exchange has been keeping authorities informed about the security incident. Both US banking regulators declined to comment on the reported inquiries.
One person familiar with the banks’ preparations expressed concern about rapidly developing artificial intelligence (AI) tools and the cybersecurity challenges they pose.
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Banks are devoting substantial resources to reviewing their systems and updating security software, the person added.
The Binance attack is believed to be the largest financial heist on record. Its scale has intensified concerns about potential security risks as cryptocurrency businesses develop closer links with traditional banking.
US regulators have previously eased restrictions on banks participating in cryptocurrency markets. The Federal Reserve withdrew earlier supervisory guidance requiring advance notification of planned crypto-related activities.
With additional input from Reuters
