January 31, 2019

National bank of Bangladesh sues to recover funds stolen by hackers from US Federal Reserve

Bangladesh Bank has filed a complaint in US District Court for the Southern District of New York, claiming that hackers stole $101 million of its funds held by the Federal Reserve Bank of New York.  The complaint alleges that North Korean hackers broke into the computer systems of Bangladesh Bank in 2016, created fraudulent payment instructions to the NY Fed, and caused the multimillion dollar transfers to New York accounts held by Rizal Commercial Banking Corporation (“RCBC”), one of the largest banks in the Philippines.  In addition to RCBC, the defendants include RCBC branch managers, sales managers and executives, and owners of companies alleged to have participated in the transfer or laundering of the stolen funds.