North Korea has become the fifth-largest sovereign holder of Bitcoin, eclipsing Bhutan and El Salvador, following a $1.4 billion theft by the Lazarus hacker group from Bybit. Lazarus now controls 13,518 BTC, accrued from various cyber exploits. Their newfound wealth has raised concerns regarding funding for North Korea’s nuclear missile program.
The Democratic People’s Republic of Korea (DPRK) has emerged as the world’s fifth-largest sovereign holder of Bitcoin, surpassing the holdings of Bhutan and El Salvador. This surge in their Bitcoin reserves, primarily the result of the hacker group Lazarus stealing over $1.4 billion from the crypto exchange Bybit, has positioned North Korea significantly ahead in this digital currency landscape. Lazarus currently controls approximately 13,518 BTC, equivalent to around $1.1 billion based on recent valuations from Arkham data.
The substantial wealth accumulated by Lazarus has primarily stemmed from various cyberattacks and crypto-related exploits over the years. Notable incidents include the DMM Bitcoin hack in 2024 and the Ronin Network breach in 2022, from which they respectively stole $308 million and over $600 million in cryptocurrency. Collectively, these exploits have significantly boosted the DPRK’s Bitcoin holdings.
North Korea’s Bitcoin accumulation now exceeds Bhutan’s 10,635 BTC, which the nation gathered through extensive mining activities, and El Salvador’s 6,118 BTC, which became notable as the first country to adopt Bitcoin as legal tender. Presently, only the Bitcoin reserves owned by the United States (198,109 BTC), China (194,000 BTC), the United Kingdom (61,000 BTC), and Ukraine (46,351 BTC) are larger than those held by North Korea.
The increase in North Korea’s Bitcoin assets followed Lazarus’ cyberattack on Bybit in February, in which the exchange reported the theft of over 400,000 Ether from its cold wallet. Lazarus utilized decentralized finance protocols such as THORChain, criticized by developers and the crypto community for insufficient enforcement against criminal activities, to convert a significant amount of ETH into BTC. According to a report by CNN, cited by a White House official, the proceeds from Lazarus and other DPRK-affiliated syndicates are believed to fund nearly 50% of North Korea’s nuclear missile program.
In conclusion, North Korea’s ascendance to the fifth-largest sovereign Bitcoin holder highlights the potential impact of cybercrime on global cryptocurrency markets. The group’s activities not only enlarge the DPRK’s digital reserves but are also alarmingly intertwined with funding significant national security threats, such as their nuclear program. The case underscores the vulnerabilities inherent in the cryptocurrency system and the ongoing implications of regulatory challenges in the digital finance space.
Original Source: crypto.news
