Three executives from the crypto-friendly bank Evolve Bank have resigned due to regulatory crackdowns and cyber attack incidents

ChainCatcher news, three executives from the crypto-friendly bank Evolve Bank & Trust have left the institution following setbacks, including a cybersecurity breach in May and law enforcement actions in June. Reportedly, the bank's Chief Credit Officer, Chief Financial Officer, and Chief Loan Officer for Open Banking have departed.

The exit of these three executives is undoubtedly a blow to Evolve Bank & Trust, which provides behind-the-scenes banking services for several crypto-friendly fintech companies. According to Evolve's website, its partners include Mercury, which offers banking services to startups (including Web3 companies), and Stripe, which provides payment processing and crypto gateways.

On August 6, Evolve announced that it had been targeted by a ransomware attack from the criminal organization LockBit, which accessed and downloaded customer information from its databases and file shares during 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 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.