Fed, OCC check US banks after Binance hack as experts flag security risks

US regulators reportedly contacted banks following last week’s $6.3 billion Binance security hack, while experts raised concerns about transaction security and crypto risks.

US regulators reportedly contacted banks following last week’s $6.3 billion Binance hack, as cybersecurity experts raised concerns about how financial institutions handle crypto-related security risks.

Officials from the Federal Reserve and Office of the Comptroller of the Currency (OCC) began contacting banks on Monday to ask about “unusual activity” or service disruptions, Reuters reported Thursday, citing people familiar with the matter. 

The reported inquiries could be followed by closer attention to how banks manage crypto-related risks, including custody, counterparty exposure and incident response, according to Stefan Muehlbauer, head of US government affairs at CertiK.

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