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 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.

“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 review security systems after Binance hack

According to Reuters, banks have been assessing the hack and checking their systems to figure out whether they could absorb or manage similar threats.

Reuters’ report also noted that a cybersecurity team at one of the largest US banks contacted Binance within hours of the hack. A Binance spokesperson confirmed with 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 explained the procedure currently 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 inquiries also 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 that the agency had nothing to share regarding the reported inquiries. Cointelegraph also contacted the OCC for comment but has not heard back at the time of publishing.

Related: Binance traces $6.3B hack to fake job interviews, compromised AI tool

The largest crypto hack raises concerns

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 crypto exchange, the attack began with compromised software installed by an engineer in June. Hackers later employed social engineering, stolen credentials and malicious software to get access to 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.

“Attackers no longer need to break encryption or steal private keys if they can compromise the trusted systems and people authorized to move money,” Williams said.

He warned that hackers could use compromised employee devices, accounts or third-party services to move money without triggering any alerts. He also said the growing use of agentic AI in financial operations could pose even more risks.

“The priority must be stopping unauthorized transactions and data exfiltration before assets or sensitive information leave the organization, not simply investigating the damage afterwards,” Williams said.

Binance has since said that it has strengthened its security controls and was bringing in independent cybersecurity experts to review the attack.