Michael Selig says the largest theft in crypto history makes the case for a voluntary US cybersecurity pathway for offshore platforms
The biggest heist in crypto history is now a regulatory talking point. CFTC Chairman Michael Selig said the Binance hack, with estimated losses of $6.3 billion, supports his agency’s plan to let offshore exchanges register under US cybersecurity safeguards.
Selig made the case in a CNBC interview on October 30, 2026, one day after the attack.
What happened at Binance
The hack took place on October 29, 2026. Attackers reportedly drained the funds in approximately 20 minutes.
The estimated $6.3 billion loss makes this the largest theft the crypto industry has recorded. The previous record was a $1.5 billion theft linked to TraderTraitor, a North Korean hacking group.
Binance has confirmed it will cover customer losses with company funds. The exchange is reserving more than $6.34 billion for that purpose.
Partners had frozen around $3 billion of the stolen funds as of the time of the incident.
Selig’s pitch: a voluntary on-ramp
Selig is using the incident to promote a voluntary federal registration pathway. Offshore exchanges that agree to US cybersecurity measures would be able to register with American regulators.
The framework is aimed specifically at exchanges that offer retail traders margin and leverage.
Under the plan, registered platforms would be expected to meet cybersecurity standards and provide customer protections.
Selig was careful about the limits of his agency’s power. He noted that full federal registration would require action from Congress.
A proposed rulemaking already underway aims to establish the voluntary registration option by December 14, 2026.
Background: a regulator with a pro-innovation brand
Selig was confirmed as CFTC Chair in December 2025. He has advocated for a pro-innovation approach to crypto regulation.
The key items to watch are the December 14, 2026 target for the voluntary option, any signal from Congress on broader registration authority, and how much of the frozen $3 billion is ultimately recovered.
