U.S. regulators began reviewing banking systems following Binance’s $6.3 billion hack because of concerns that attacks on cryptocurrency companies could pose risks to the traditional financial sector. The Federal Reserve and the Office of the Comptroller of the Currency contacted banks about unusual activity and potential service disruptions, Reuters reported, citing people familiar with the matter.

Banks check systems after Binance attack

One financial institution told regulators that it had detected no disruptions, according to the report. Its staff also prepared talking points for communicating with clients, though customers asked few questions about the incident.

Two Reuters sources said banks were studying the Binance attack, which they considered the largest financial heist in history, and running diagnostics on their own systems. The checks included looking for vulnerabilities that the Binance hackers may have exploited.

Within hours of the incident, the cybersecurity team at one of the largest U.S. banks contacted Binance specialists. The bank is preparing an internal report that could provide a basis for further infrastructure checks and updates to its protective measures.

Binance said it had no information about banks contacting regulators or about the attack affecting U.S. financial institutions.

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

AI complicates cyber defenses

Banks are particularly concerned that the rapid development of artificial intelligence models is making it harder for financial institutions to keep pace with hackers’ methods, according to one Reuters source. Financial institutions are consequently committing significant resources to reviewing and updating the software code responsible for cybersecurity.

The incident also drew attention to strengthening ties between the cryptocurrency sector and traditional finance. President Donald Trump’s administration supports the development of the crypto market, while U.S. banking regulators have been gradually easing restrictions on financial institutions’ participation in the sector.

The Federal Reserve, for example, repealed a 2022 rule that recommended banks obtain regulatory approval before beginning activities related to cryptoassets.

The U.S. Federal Bureau of Investigation identified North Korea as responsible for the theft of more than $6 billion from Binance. North Korea rejected U.S. allegations that it was involved in the hack.

Source: Incrypted