Binance Hacked: CFTC Chair Says Blockchain Gives ‘A Very Good Shot’ At Tracing Stolen Funds - Yahoo Finance
The world's largest crypto exchange, Binance, was hacked on Thursday night, with losses amounting to around $6.34 billion. Commodity Futures Trading Commission (CFTC) Chairman Michael Selig said the public record of blockchain transactions gives investigators a strong chance of tracing the stolen funds.
The attack targeted systems surrounding the blockchain rather than the blockchain itself, but the immutable ledger of transactions remains a key asset for investigators.
Selig acknowledged that hackers could use mixing services such as Tornado Cash to make funds harder to trace, but said blockchain records can still help investigators follow the money.
I do believe that the blockchain gives us a very good shot
CFTC Pushes For Federal Oversight
Selig said the breach reinforced the CFTC's case for bringing crypto trading venues under federal oversight, particularly offshore exchanges that operate without the safeguards required in U.S. financial markets.
The real issue here is that these are unregulated offshore exchanges, and they don't have the same sorts of safeguards that we have in our financial markets here in the U.S.
He said the agency wants to offer exchanges a path to register with the CFTC, which would subject them to cybersecurity requirements similar to those in U.S. financial markets.
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