North Korean hackers, especially the well-known Lazarus Group, are said to be aiming their next big target at US Bitcoin exchange-traded funds (ETFs). Cybercriminals want to get into these ETFs because they are very valuable. Together, they hold about $52 billion in Bitcoin.
The higher risk has been brought up by Michael Pearl, Vice President of GTM Strategy at the defense company Cyvers. Pearl says that the FBI has recently warned about possible threats on these funds. He makes it clear that the Bitcoin ETF system has holes that could allow for major security breaches.
The risks don’t just affect the ETF companies. Pearl warns that partners and companies that work with them are also at risk. He stresses how important it is to move quickly to fix these problems so that big hacks don’t happen that could lead to stricter rules.
The $230 million WazirX hack is still reverberating through the industry and shows how badly we need better protection. Even though it cost a lot, this event made institutional investors and ETF producers more aware of the challenges they face.
As worries grow, people in the cybersecurity community are calling for proactive steps to protect these important assets and stop attacks that could be very bad.
