ChainCatcher reported that three executives of crypto-friendly bank Evolve Bank & Trust have resigned after the bank suffered setbacks, including a cybersecurity breach in May and law enforcement actions in June. The bank’s chief credit officer, corporate treasurer, and chief lending officer for open banking have reportedly resigned.
The exit of the three executives is undoubtedly a further blow to Evolve Bank & Trust, which provides behind-the-scenes banking services to several cryptocurrency-friendly fintech companies. According to Evolve’s website, its partners include Mercury, which provides banking services to startups (including Web3 companies), and Stripe, a payment processor and crypto gateway.
On August 6, Evolve announced that it had been hit by a ransomware attack by the criminal group LockBit, which accessed and downloaded customer information from its databases and file shares between February and May. Evolve refused to pay the ransom, resulting in the data being leaked.
Additionally, in June the Federal Reserve Board (FRB) initiated enforcement action against the bank for deficiencies in anti-money laundering, risk management, and consumer compliance, requiring Evolve to strengthen its risk management practices to address compliance and fraud risks.
