Fed, OCC launch urgent bank security review after Binance hack

U.S. financial authorities have begun an urgent review of the banking sector after Binance’s $6.3 billion hack, the largest on record, to prevent crypto-related security risks from spilling into traditional finance. According to Reuters, the Fed and the Office of the Comptroller of the Currency have been contacting major commercial banks since earlier this week to assess any signs of system abnormalities or service disruptions. The move is aimed at preemptively blocking the fallout from a major security breach at a crypto exchange from spreading to banking networks. Large U.S. banks are now conducting detailed internal diagnostics to identify vulnerabilities that could expose them to similar attack methods. At one major bank, the cyber security team has been in direct contact with Binance and is preparing an internal report analyzing the attack vector, with plans to overhaul its security infrastructure based on the findings. Binance also said it has been communicating with regulators in multiple countries in real time.