OneKey Founder Warns BlackRock Bitcoin ETF Could Face North Korean Threats

The founder of crypto wallet maker onekey, Yishi Wang, has raised concerns that North Korean hackers could target BlackRock's sixty-two billion dollar Bitcoin exchange-traded fund. Wang expressed his suspicion that the iShares Bitcoin Trust is already on a shortlist for North Korea, following a recent six billion dollar Binance hack attributed by United States authorities to the TraderTraitor operation.

This warning brings renewed attention to Coinbase, which functions as the primary Bitcoin custodian for BlackRock's fund, known as IBIT, currently representing the world's largest spot Bitcoin ETF. Coinbase previously adjusted its offline storage systems and blocked transfers to compromised Binance wallets following that security breach, while maintaining that its core infrastructure remained secure.

Wang's apprehension arises from techniques used in previous cryptocurrency thefts, including the February 2025 Bybit hack which resulted in about one and a half billion dollars in losses. In that event, attackers compromised a developer computer using malicious software disguised as development tools, eventually manipulating transaction interfaces so authorized signers approved malicious transfers from cold storage without needing to extract private keys.

As of late October, BlackRock's fund held approximately 815000 bitcoins, representing nearly four percent of Bitcoin's maximum supply and creating a significant concentration of institutional custody assets. Although BlackRock appointed Anchorage Digital as an additional custodian, quarterly filings show no immediate plans to transfer Bitcoin away from Coinbase.

Institutional custody systems face growing scrutiny as complex software vulnerabilities threaten large digital asset holdings.

There is currently no evidence that IBIT or Coinbase custody systems have been compromised, and Wang's warning does not establish active targeting. However, BlackRock annual filings indicate that Coinbase maintains commercial crime insurance shared among customers rather than exclusive coverage, with liability generally limited to one hundred million dollars per cold storage address subject to contractual terms.

Why it matters

Unlike stablecoins that can be frozen at the token level, Bitcoin lacks a centralized mechanism to restrict stolen assets, leaving shareholders potentially exposed to losses that may not be fully recovered through insurance or tracing. This situation highlights potential vulnerabilities in institutional custody arrangements where offline storage still relies on complex software and transaction approval systems.