Contradictory reports have emerged regarding the impact of the attack on the U.S. Treasury market.
The Chinese parent company injected capital into the U.S. unit to settle trades and pay back BNY Mellon, which it owed $9 billion for unsettled trades.
The Industrial and Commercial Bank of China's (ICBC) U.S. arm was hit by a ransomware attack, disrupting its trading operations.
The Industrial and Commercial Bank of China's (ICBC) U.S. arm was hit by a ransomware attack, disrupting its trading operations and causing a ripple effect in the U.S. Treasury market. The attack was believed to be orchestrated by an aggressive cybercrime gang named Lockbit. The Chinese parent company has since injected capital into the U.S. unit to settle trades and pay back BNY Mellon, which it owed $9 billion for unsettled trades.
Despite the disruption, China's foreign ministry stated that the lender is striving to minimize risk impact and losses. ICBC's computer systems have been isolated from the rest of Wall Street, and alternative systems have been put in place to ensure the continuity of operations.
Contradictory reports have emerged regarding the impact of the attack on the U.S. Treasury market. While U.S. Treasury Secretary Janet Yellen stated that the ransomware attack did not interfere with the U.S. government debt market, other reports suggest that the $26 trillion Treasury market experienced settlement delays following the cyberattack. The Federal Reserve reported a 'service issue' impacting the Fedwire Securities service, which handles settlements for U.S. Treasuries.
Yellen emphasized the importance of maintaining close communications between top economic officials in both countries and assured that the U.S. has provided as much assistance as possible to the firm in dealing with the issue. The incident underscores the growing threat of cybercrime to global financial systems and the need for robust cybersecurity measures.
US Treasury Secretary Janet Yellen stated that the ransomware attack on the Industrial and Commercial Bank of China (ICBC) did not interfere with the US government debt market.
She emphasized the importance of maintaining close communications between top economic officials in both countries, and assured that the US has provided as much assistance as possible to the firm in dealing with the issue.
Accuracy
US Treasury Secretary Janet Yellen stated she has 'not seen an impact' on the US bond market from the cyberattack. This contradicts the reports from Reuters and SCMP that the attack has raised questions over market participants' cybersecurity controls and has sent ripples through the US Treasuries market.
ICBC's US unit was hit by a ransomware attack claimed by cybercrime gang LockBit, disrupting its trading operations and leaving it owing BNY US$9 billion for unsettled trades.
The Chinese parent company injected capital into the US unit to settle the trades and pay back BNY Mellon.
Accuracy
The attack sent ripples through the US Treasuries market, where ICBC acts as a broker for hedge funds and other market participants. This contradicts the statement from US Treasury Secretary Janet Yellen that she has 'not seen an impact' on the US bond market from the cyberattack.
The $26 trillion Treasury market is experiencing settlement delays following a cyberattack on the Industrial & Commercial Bank of China Ltd. (ICBC).
The Federal Reserve reported a 'service issue' impacting the Fedwire Securities service, which handles settlements for US Treasuries.
Accuracy
US Treasury Secretary Janet Yellen stated she has 'not seen an impact' on the US bond market from the cyberattack. This contradicts the reports from Reuters and SCMP that the attack has raised questions over market participants' cybersecurity controls and has sent ripples through the US Treasuries market.