The United States Federal Bureau of Investigation has announced that North Korean scammers and hackers are targeting firms associated with cryptocurrency-related exchange-traded funds (ETFs). Despite the billions of dollars flowing into these crypto ETFs, investors may be too quick to assume their assets are fully secure.

North Korean hacker groups such as Lazarus Group are no strangers to the cryptocurrency industry and are suspected of committing a number of hacks against prominent exchanges and blockchain protocols. Officials fear they could target crypto-backed ETFs by going after their underlying assets.

Stock market ETFs must have a solid system that tracks and replicates the underlying asset price accordingly. However, fund managers for a spot crypto ETF must provide custody — either themselves or through a third party — of the physical digital assets to match the total assets under management (AUM).

The announcement from the FBI raises significant security concerns for the billions of dollars in BTC and ETH held by crypto ETF custodians, which could become prime targets for North Korean hackers.

Source: https://cointelegraph.com/news/bitcoin-etf-security-fbi-north-korea-hackers

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