CFTC Chair Uses $6.4 B Binance Hack to Push for U.S. Oversight of Offshore Crypto Exchanges

CFTC Chairman Michael Selig told CNBC that the $6.4 billion theft from Binance demonstrates the need for federal regulation of unregulated offshore exchanges. He said the breach was caused by a laptop‑introduced vulnerability rather than a flaw in the Ethereum blockchain, and highlighted the speed with which crypto funds can move and the use of tools like Tornado Cash to obscure trails. Binance’s investigation revealed additional breach points, including a compromised DevOps engineer’s laptop and a compromise of its signing infrastructure. Selig argues that on‑chain traceability gives regulators a powerful tool and proposes a federal option that would allow offshore venues to register with the CFTC and meet U.S. cybersecurity standards.