Fed, OCC assess bank security risks following $6.3 billion Binance hack: Report

The biggest heist in crypto history has caught Washington's attention. US regulators and banks are examining potential cybersecurity risks following the $6.3 billion Binance hack, amid concerns that attacks on crypto platforms could spill over into traditional finance.

Federal Reserve and OCC supervisors contacted banks on Monday to check for unusual activity and service disruptions, Reuters reported Thursday, citing people familiar with the matter.

Several financial institutions have also started internal security reviews, with one major US bank's cybersecurity team reaching out to Binance within hours of the attack.

The bank is preparing a report that could lead to further system checks and security updates.

Binance moved to cover customer losses after suspending withdrawals and other services following the attack.

The exchange allocated more than $6.34 billion in company funds, including corporate treasury resources, its Futures insurance fund and SAFU, to ensure customers would not absorb the losses. External platforms also helped contain the damage, with Tether initially freezing more than $1.57 billion in USDT and Circle freezing over $800 million in USDC.

By October 31, Binance had replenished 98% of the affected token balances, according to its November 3 update, and said it had reserved more than 100% of the required funds.