Binance Hack Shows Why Offshore Exchanges Need US Oversight, CFTC Chair Says
CFTC Chairman Michael Selig cited the roughly $6.4 billion Binance hack as evidence for federal oversight of offshore crypto exchanges, arguing registered venues should meet U.S. cybersecurity standards. He said the exploit did not compromise Ethereum itself, though attackers used the EIP-7702 feature to drain a Binance hot wallet after compromising signing infrastructure. Binance says its investigation found multiple breach points, making the attack more complex than a single engineer’s compromised laptop. U.S. agencies are investigating, and blockchain analytics firms have linked the theft to North Korea’s TraderTraitor group. Binance has set aside $6.34 billion to cover losses. The CFTC is advancing crypto-market proposals while broader legislation remains stalled.
