North Korea has become the world’s third-largest bitcoin holder with 1.7 trillion won. Following a significant hack, it holds 13,562 bitcoin, laundering $1.46 billion worth of Ethereum. Concerns arise about market impacts if these holdings are liquidated for weapons funding, though analysts suggest potential minimal effects due to high trading volumes.
North Korea has amassed a substantial portfolio of bitcoin, worth approximately 1.7 trillion won, positioning itself as the world’s third-largest holder of the cryptocurrency, following the United States and the United Kingdom. This acquisition included significant hacking activity, notably the breach of Vibit, the second-largest virtual assets exchange, leading to a theft valued at around 2 trillion won worth of Ethereum.
As reported by blockchain analysts from Arkham Intelligence, the North Korean hacking group Lazarus holds 13,562 bitcoin. Notably, North Korea successfully laundered $1.46 billion worth of Ethereum stolen from Bybit on January 21 by utilizing Tornado Cash, subsequently converting this into bitcoin.
In terms of bitcoin holdings, North Korea ranks third globally, trailing only the U.S. with 198,109 bitcoin and the U.K. with 61,245 bitcoin. Other notable holders include Bhutan with 10,635 bitcoin and El Salvador with 6,117 bitcoin. The hacking incident at Vibit is described as the largest single hack ever recorded, amounting to over half of the $2.2 billion in total virtual asset hacks reported last year, according to Chainalysis.
The U.S. bitcoin stockpile largely originates from assets confiscated from the infamous Silk Road, a dark web marketplace, while the U.K. recently seized over 60,000 bitcoin from a money launderer. In contrast, North Korea’s acquisition of bitcoin has been through cybercrimes, while Bhutan and El Salvador have engaged in mining and purchasing strategies, respectively.
The hacking incident was executed by North Korean hackers infiltrating a developer’s computer of the security solution, manipulating the screen of the safe program associated with bi-bit transactions. The prevailing market sentiment anticipates that North Korea may liquidate its bitcoin holdings for funding its weapons of mass destruction and ballistic missile development, raising concerns among virtual asset investors regarding potential market repercussions, given the valuation of 1.7 trillion won.
Despite such concerns, some analysts predict minimal impact on the overall bitcoin market, citing the significant daily trading volume worldwide. As per CoinMarketCap, the trading volume for bitcoin within the previous 24 hours reached approximately $23.2 billion at 2 p.m. on that day, with North Korea’s holdings representing around $1.1 billion. Kim Min-seung, head of the Covit Research Center, pointed out the historical context, noting that there was no notable market crash when 53,679 bitcoin seized by the German government was introduced into circulation last year.
In summary, North Korea’s strategic acquisition of bitcoin through hacking, resulting in holdings valued at 1.7 trillion won, has positioned it as a significant player in the cryptocurrency market. Despite concerns regarding market fluctuations and potential impacts from liquidation to fund military developments, historical data suggests that the overall market may remain stable. Analysts emphasize that the vast trading volume of bitcoin may mitigate any potential risks associated with North Korea’s holdings.
Original Source: www.mk.co.kr
