According to Cointelegraph, a senior official at blockchain security company Cyvers said that North Korean hackers, including the Lazarus Group, may begin to shift their attacks to larger targets, including Bitcoin in the United States. Exchange Traded Funds (ETFs).
The Lazarus Group has been linked to some of the most notorious hacks in the cryptocurrency space, including the Ronin cross-chain bridge hack that cost $625 million. According to Michael Pearl, vice president of strategy at Cyvers GTM, hackers may start turning their attention to U.S. Bitcoin ETFs due to the potentially huge bounties. Data from Dune shows that Bitcoin ETFâs cumulative on-chain BTC holdings have reached $53 billion.
Pearl told Cointelegraph: âThe FBI just recently issued a warning that North Korean hackers will try to penetrate ETFs and steal funds from them. So, all of these ETFs...have the underlying Bitcoin stored somewhere. , and you can bet someone is already planning and thinking about how to steal it.â
Bitcoin ETF loophole could trigger tighter cryptocurrency regulation
North Korean hackers are targeting the infrastructure surrounding Bitcoin ETFs, creating worrying risks and potential challenges for the industry.
Cyversâ Pearl warns that itâs not just ETF providers that could be targeted, but all related companies:
"Not just the ETF providers, but the surrounding, all the companies that work closely with them... (ETF vulnerabilities) are something we need to solve quickly, otherwise we will see major hacking attacks."
According to Pearl, a potential âmassive hackâ of Bitcoin ETFs could draw heightened regulatory attention in the U.S., which could prompt stricter regulatory measures in other jurisdictions.
The FBI released a report earlier this month titled "North Korea Actively Targets the Crypto Industry with Well-Disguised Social Engineering Attacks." The agency wrote:
"North Korean malicious cyber actors have conducted research on a variety of targets related to cryptocurrency exchange-traded funds (ETFs) over the past few months. This research, including preparations for operations, shows that North Korean actors may attempt to target targets related to cryptocurrency exchange-traded funds (ETFs). Companies related to cryptocurrency ETFs or other cryptocurrency-related financial products conduct malicious network activities.â
The FBI has put out a statement/warning that "North Korean actors may attempt malicious cyber activities against companies associated with cryptocurrency ETFs." The notice includes what to watch for and what you can do about it. h/t @Cointelegraph Link: https://t.co/aeyrg9ElWh pic.twitter.com/8OR8iOXhnb
â Eric Balchunas (@EricBalchunas) September 4, 2024
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