Banks get a crypto security checkup after Binance’s $6.34 billion breach

US regulators contacted banks following last week’s $6.3 billion Binance hack, asking about “unusual activity” or service disruptions, Reuters reported Thursday, citing people familiar with the matter. Officials from the Federal Reserve and Office of the Comptroller of the Currency (OCC) began contacting banks on Monday, as the industry assessed potential security risks linked to the incident.

The inquiries could lead to closer scrutiny of how banks manage crypto-related risks, including custody, counterparty exposure and incident response, said Stefan Muehlbauer, head of US government affairs at CertiK. “After an incident of this scale, it would be surprising if the Fed and OCC didn’t check in with the banks they supervise,” Muehlbauer told Cointelegraph. “Their mandate is to protect the financial system, and that means understanding where exposures sit and how quickly they can respond.”

Banks have been reviewing their security systems to determine whether they could absorb or manage similar threats, Reuters reported. A cybersecurity team at one of the largest US banks contacted Binance within hours of the hack. A Binance spokesperson confirmed to Cointelegraph that the exchange shared its publicly released incident report with all its banking partners and was not aware of any vulnerabilities affecting them.

Muehlbauer said the procedure unfolding is “how a maturing framework should work.” He added that “it’s not a signal that regulators are pulling back from the industry.” The checks come after the Federal Reserve removed a requirement in April 2025 for state member banks to notify regulators before engaging in crypto activities. The Fed said it would continue overseeing those activities through its regular supervisory process; a Federal Reserve spokesperson told Cointelegraph the agency had nothing to share about the reported inquiries. Cointelegraph also contacted the OCC for comment but had not heard back at the time of publishing.

Binance said in its Nov. 3 incident report that approximately $6.34 billion in digital assets were affected by the attack on Oct. 29, with $2.85 billion frozen or intercepted as of the report. According to the exchange, the attack began with compromised software installed by an engineer in June. Hackers later used social engineering, stolen credentials and malicious software to access wallet systems and carry out unauthorized transfers. Dr. Darren Williams, founder and CEO of cybersecurity firm BlackFog, told Cointelegraph that the methods used in the attack pose potential risks to traditional banks, particularly those offering crypto custody and payment services.