CFTC chairman calls for offshore exchange oversight after Binance hack

Commodity Futures Trading Commission Chairman Michael Selig stated on Friday that a massive security breach at Binance demonstrates why offshore cryptocurrency platforms must face federal supervision. Speaking to CNBC, Selig used the theft to urge offshore exchanges to register with the CFTC and implement United States security standards, Decrypt reported. [1]

Outlets differ on the total financial impact of the security breach. Decrypt put the stolen total at roughly $6.4 billion. Bankless, The Crypto Times, and Howl.Link reported the figure as $6.3 billion, while Bitcoinist.com noted that one Ethereum permission alone was used to drain $2.5 billion. [1][2][3][4][7]

The CFTC is an independent federal agency created in 1974 to regulate United States derivatives markets. As FTMQ Crypto reported earlier, Selig recently announced new regulatory initiatives aimed at enabling digital asset spot platforms to register directly with the agency. Selig told CNBC that unregulated offshore entities lack the consumer safeguards present in traditional domestic financial markets. [1][14][15]

Efforts to contain the stolen funds are underway. TradingView reported that the United States Secret Service joined stablecoin issuers Circle and Tether to freeze $2.37 billion connected to the incident. Bankless reported that Binance stated it will fully cover the $6.3 billion loss. [2][10]