The weaknesses that cost Binance $6.3 billion are already hitting Europe’s banks
“If a company like Binance can lose billions of dollars, the threats facing banks are overwhelming,” said Ryan Kirkley, cofounder and CEO of Global Settlement, which develops blockchain infrastructure for banks.
Key points
- The FBI has seized $1.2 billion of the stolen cryptocurrency, while Binance confirmed it had “replenished” approximately 98% of the total impacted amount.
- In July, the European Central Bank wrote to the chief executives of 110 banks warning about the risks of frontier AI models, which are making it “quicker and cheaper to identify and exploit vulnerabilities in IT systems.”.
- Many still run core systems that are decades old, next to old servers, building control systems and suppliers’ remote access.” Her advice is for banks to start by knowing every device connected to their….
The weaknesses hackers exploited to steal funds on Binance are not unique to crypto and the same vulnerabilities are present in traditional financial institutions, said Katerina Mitrokotsa, professor of cybersecurity at the University of St.
Additional details
- Speaking at the Digital Asset Summit in London on November 10, he said: “It is impossible for the average bank to stay secure.” Binance’s founder and former CEO, Changpeng Zhao, went further.
- In the U.S., the Federal Reserve and the Office of the Comptroller of the Currency began calling banks on November 2 to ask about unusual activity and service disruptions, Reuters reported.
- Banks have some advantages over crypto platforms, according to Vivien Mura, chief technology officer of Orange Cyberdefense, the cybersecurity arm of French telecoms group Orange.
- This involved arranging a series of fake job interviews to persuade a Binance engineer to inadvertently download malware which allowed the hackers into the company’s systems.
- Attackers are already exploiting Europe’s aging IT systems.
How this summary was made: extractive summary — built from the sources' own reporting. It is drawn only from the reporting of the sources listed below — read the originals for full detail. How we summarize →
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