Aaron Tantleff Highlights Corporate Risk Lessons from Record-Setting Cyberattack
Foley & Lardner LLP partner Aaron Tantleff was quoted in the Law360 article, “The Record $6.3B Binance Hack May Test Crypto’s Regulatory Resolve,” addressing the cyberattacks implications for customer confidence, platform security, and cryptocurrency regulation.
Tantleff explained that even if Binance fully reimburses customers, “they would likely still struggle to regain customers’ trust.” To rebuild confidence, he added, “Binance will need to explain what allowed the theft and show how it can limit the damage an attacker could cause next time, since attackers will keep coming for the assets.”
Highlighting industry-wide cybersecurity concerns, Tantleff explained, “An attacker may not need to steal a key if they can get the system holding it to approve a transfer.” He further noted, “Any business whose systems can move money or release sensitive information should be testing for that possibility. A second approval helps only if the attacker cannot control that approval too.”
Tantleff stressed that companies outside the crypto industry should also “consider limits on what compromised systems can release, automatic stops for suspicious activity, and people with clear authority to suspend transactions before every fact is known.”
On legislative developments, Tantleff examined the debate around the pending Clarity Act, saying, “Before blaming the theft on a gap in the law, I’d wait for investigators to find out if the issue was weak rules, not following the rules, or safeguards that didn’t work even with compliance.” He anticipates that the incident may “lead to more calls for legislation and push lawmakers to demand stronger custody protections before backing a bill.”
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