Coinbase is being targeted by North Korean hackers, according to a recent report by the Federal Bureau of Investigation (FBI). The report highlights that North Korea has been conducting thorough research before launching attacks, focusing on decentralized finance (DeFi) projects, decentralized exchanges (Dexs), centralized exchanges (Cexs), and now, firms linked to crypto exchange-traded funds (ETFs).
Bill Hughes, in a social media post, expressed concerns about the security of ETF issuers, stating that it is unusual for North Korean hackers to target them. Previously, these hackers targeted banks worldwide, but now they are shifting their focus to ETF issuers, who deal with significant amounts of money.
Eleanor Terrett, a journalist, echoed these concerns, specifically referring to Coinbase as a major target for the malicious actors from North Korea. This is because Coinbase holds the custody of eight out of the eleven Bitcoin spot ETFs and seven out of the nine Ethereum spot ETFs, making them an attractive target for hackers.
Terrett also mentioned that the Securities and Exchange Commission (SEC) is discouraging federally regulated banks from custodying crypto assets, narrowing down the custodian pool and making ETFs more centralized and potentially vulnerable. She emphasized the need to repeal Staff Accounting Bulletin No 121 (SAB 121), which requires companies to recognize liabilities for safeguarding assets and corresponding assets on their balance sheet, leading to additional burdens and risks for federally recognized banks.
As the custodian of numerous crypto ETFs, it is crucial for Coinbase to have robust security measures and resources to protect these assets from potential hacking attempts by North Korea or any other malicious actors.