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ICBC pumps funds into US unit after ransomware attack to pay US$9 billion for unsettled trades, hires cybersecurity firm
- The cyberattack has shocked the US Treasuries market, where the Chinese lender acts as a broker for hedge funds and others
- ICBC’s computer systems are isolated from the rest of Wall Street but alternative systems are in place to enable its trading, sources say
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Industrial and Commercial Bank of China injected capital into its US unit to help pay BNY Mellon US$9 billion for unsettled trades and hired a cybersecurity firm to enable it to resume normal business after a ransomware attack, sources familiar with the matter said.
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ICBC’s US unit told market participants on Friday it was hoping to finish the cyber review over the weekend, but the sources said they expected it would spill into next week. Meanwhile, the bank is using manual processes to trade, they said.
The details, including the cash injection for unsettled trades, have not been previously reported.
The ransomware attack was claimed by cybercrime gang LockBit, a widely deployed ransomware first seen on Russian-language-based cybercrime forums in January 2020. It is the latest in a string of ransom demands by hackers this year.
The cyberattack sent ripples through the US Treasuries market, where ICBC acts as a broker for hedge funds and other market participants, helping them trade in the securities. While the extent of disruption to market was limited, it brought into focus the resilience of a market that underpins global finance.
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