According to Odaily, three senior executives from the crypto-friendly Evolve Bank & Trust have resigned following a series of setbacks, including a cybersecurity breach in May and regulatory action in June. The departing executives include the Chief Credit Officer, the Corporate Finance Officer, and the Chief Lending Officer for Open Banking. This departure adds to the challenges faced by Evolve Bank & Trust, which provides banking services to several crypto-friendly fintech companies. Evolve's partners include Mercury, which offers banking services to startups including Web3 companies, and Stripe, a payment processing and crypto gateway service.
On August 6, Evolve announced that it had been targeted by the criminal organization LockBit in a ransomware attack. The attack occurred between February and May, during which LockBit accessed and downloaded customer information from Evolve's databases and file-sharing systems. Evolve refused to pay the ransom, resulting in the data being leaked.
Additionally, in June, the Federal Reserve Board (FRB) initiated enforcement action against Evolve Bank & Trust due to deficiencies in its anti-money laundering, risk management, and consumer compliance practices. The FRB has mandated that Evolve strengthen its risk management practices to address compliance and fraud risks.
