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North Korean hackers, responsible for committing some of the biggest attacks on cryptocurrency entities over the years, have now set their sights on U.S.-based exchange-traded funds associated with Bitcoin BTC/USD-2.00%+ Free Alerts and Ethereum ETH/USD-2.00%+ Free Alerts, according to an FBI warning.

What Happened In a public service announcement dated Sept. 3, the FBI alerted that cybercriminals from the Kim Jong Un-ruled nation have carried out research “on a variety of targets” connected to cryptocurrency ETFs over several months.

“This research included pre-operational preparations suggesting North Korean actors may attempt malicious cyber activities against companies associated with cryptocurrency ETFs or other cryptocurrency-related financial products,” the warning read.

The FBI reminded that North Korean attackers use sophisticated techniques to drain out funds and remain a “persistent threat” to companies sitting on a large pile of cryptocurrencies.

The warning sparked concern among cryptocurrency observers, with Fox journalist Eleanor Terrett highlighting the risk of having Coinbase as the custodian for the majority of the issuers.

Indeed, Coinbase was the custodian of 9 out of 11 Bitcoin spot ETFs, and 8 of 9 Ethereum ETFs as of this writing.

This alert from the FBI aligned with reports of escalated attacks by North Korean hackers in the cryptocurrency domain.

In September 2024, Benzinga reported a significant increase in North Korean state-sponsored hackers intensifying their efforts to steal digital assets, with the stolen funds doubling to $1.6 billion.

Funds lost to "crypto heists" nearly doubled year-over-year, from $857 million to $1.58 billion as of the end of July, with cybercriminals from the “Hermit Kingdom” being the main culprits.

The UN Security Council's panel of experts on North Korea reported in September 2023 that North Korean hackers had stolen an estimated $3 billion in cryptocurrencies since 2017.

The notorious crime syndicate, Lazarus Group, has been at the forefront of these attacks.

It was suspected of laundering over $35 million from the infamous hack of Japanese cryptocurrency exchange DMM Bitcoin in May.

Furthermore, on-chain investigations pointed to the group’s involvement in stealing $230 million from Indian cryptocurrency exchange WazirX in July.