Three top executives of crypto-friendly Evolve Bank leave amid regulatory crackdown and cyberattack

Three executives from crypto-friendly bank Evolve Bank & Trust have left following setbacks at the bank, including a cybersecurity breach in May and an enforcement action in June. The bank’s chief credit officer, corporate treasurer, and chief lending officer for open banking have reportedly left. The exit of three executives is undoubtedly a further blow to Evolve Bank & Trust, which provides behind-the-scenes banking services to several crypto-friendly fintech companies. According to Evolve’s webpage, its partners include Mercury, which provides banking services to startups (including Web3 companies), and Stripe, a payment processor and crypto on-ramp. On August 6, Evolve announced that it had been attacked by ransomware by the criminal organization 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. In addition, in June, the Federal Reserve Board (FRB) initiated enforcement actions against the bank due to deficiencies in anti-money laundering, risk management, and consumer compliance, requiring Evolve to strengthen its risk management practices to address compliance and fraud risks. (Cointelegraph)