North Korean hackers may target Bitcoin ETFs for next cyberattack

North Korean hackers, including the well-known Lazarus Group, could soon shift their focus to U.S.-based Bitcoin (CRYPTO:BTC) exchange-traded funds (ETFs), drawn by the potential rewards of their substantial holdings.

Bitcoin ETFs currently hold a combined $52.1 billion in on-chain assets, according to data from Dune.

This large concentration of value may serve as an attractive target for hackers.

Michael Pearl, Vice President of GTM Strategy at onchain security firm Cyvers, discussed the growing concerns in an interview.

Pearl pointed out that the FBI recently issued a warning that North Korean hackers are likely to attempt to infiltrate and steal funds from ETFs.

He emphasised, “You can be certain that somebody is already planning and thinking of how they're going to steal it.”

The Lazarus Group, notorious for some of the most significant cryptocurrency breaches, including the $625 million Ronin bridge hack, is among those believed to be preparing for these kinds of attacks.

Cyvers warns that it’s not just the ETF providers that need to be vigilant but also other companies connected to the ETFs.

Pearl noted, “It's also the periphery, all the adjacent companies that are working with them. […] [ETF vulnerabilities are] something that we need to address very fast because if not, we’re going to see mega hacks.”

The potential for such a massive security breach in Bitcoin ETFs could lead to increased regulatory scrutiny in the U.S. and beyond.

Stricter regulations might follow as a precaution to safeguard digital assets held by ETFs.

The discussion around cybersecurity has become more pressing following the $230 million hack of WazirX (CRYPTO:WRX) in July, the second-largest crypto breach of 2024.

Pearl mentioned that Cyvers’ algorithms had identified the malicious smart contract that caused the hack eight days before it occurred, underscoring the value of proactive security measures in the cryptocurrency space.

At the time of reporting, the Bitcoin (BTC) price was $58,247.46.