2023-11-11 00:31:33
The Chinese parent company of the Industrial and Commercial Bank of China (ICBC) appears to have injected fresh capital into its US unit following a ransomeware attack this week. As several people familiar with the matter said on Friday (local time), the money will be used to pay for previously unsettled transactions with BNY MellonBK.N and to hire a cybersecurity firm.
According to the insiders, ICBC officials told market participants on Friday afternoon at a conference call organized by trade group Securities Industry and Financial Markets Association (SIFMA) that they had already hired a cybersecurity firm to conduct an assessment to ensure their systems were secure . ICBC hopes to complete the audit this weekend, the insiders said. The Chinese bank has not yet responded to a request for comment.
The representative of ICBC Bank in the USA reported an extortionate cyber attack on Thursday. The cyberattack then rocked the US Treasury bond market, where ICBC acts as a broker for hedge funds and other market participants. ICBC was unable to access its systems, temporarily owing BNY $9 billion (€8.42 billion) for unfinished trades. The Custodian is the sole settlement agent for U.S. Treasury securities.
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