North Korean Hackers May Target U.S. Bitcoin ETFs, Experts Warns

North Korean hackers could potentially shift their focus to U.S.-based Bitcoin exchange-traded funds (ETFs), according to security experts.

The Lazarus Group, known for major cryptocurrency heists including the $625 million Ronin bridge attack, may target these ETFs due to the significant financial rewards they offer.

Michael Pearl, vice president of GTM strategy at Cyvers, revealed that the FBI recently warned about possible infiltration attempts by North Korean hackers aiming to steal from ETFs. With U.S. Bitcoin ETFs holding a total of $52.1 billion in Bitcoin, these funds present an attractive target for cybercriminals.

Pearl also highlighted that the threat extends beyond just ETF providers to include associated companies. He stressed the urgency of addressing vulnerabilities in the ETF ecosystem to prevent large-scale attacks, which could trigger tighter regulations.

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The recent $230 million WazirX hack has heightened institutional awareness of cybersecurity within the crypto sector. Pearl noted that while the hack was costly, it has underscored the need for enhanced security measures among hedge funds and ETF issuers. Cyvers had detected the malicious contract responsible for the WazirX breach in advance, potentially averting the attack.

Alexander Stefanov