North Korea has become the fifth-largest sovereign Bitcoin holder, following the Lazarus Group’s theft of $1.4 billion from Bybit. With 13,518 BTC, North Korea surpasses Bhutan and El Salvador. The wealth was gained through extensive cyber attacks. This increase raises concerns about the implications for the country’s financing of its nuclear missile program.
The Democratic People’s Republic of Korea (DPRK) has recently ascended to become the world’s fifth-largest sovereign holder of Bitcoin, surpassing both Bhutan and El Salvador. This development follows the Lazarus Group’s theft of over $1.4 billion from the cryptocurrency exchange, Bybit, resulting in the group controlling 13,518 Bitcoin, valued at about $1.1 billion according to Arkham data.
The significant wealth acquired by Lazarus stems from a series of cyber attacks and cryptocurrency exploits over the years. Notable incidents include the DMM Bitcoin hack in 2024, during which they stole $308 million, and the Ronin Network breach in 2022, where the group appropriated over $600 million in crypto assets.
Currently, Lazarus holds more Bitcoin than Bhutan’s collection of 10,635 BTC, acquired through extensive mining, and El Salvador’s 6,118 BTC, the latter being the inaugural country to legalize Bitcoin as legal tender. This leaves only the U.S., China, the U.K., and Ukraine with larger sovereign Bitcoin holdings than North Korea.
The notable increase in North Korea’s wealth follows the attack on Bybit in February, where the exchange revealed the illicit withdrawal of over 400,000 Ether (ETH) from its secure multi-signature cold wallet. Lazarus utilized decentralized finance protocols, such as THORChain, which have faced criticism for inadequate anti-criminal safeguards, to convert a substantial portion of the stolen ETH into Bitcoin. According to CNN, citing a White House source, the illicit proceeds from Lazarus and other DPRK-funded operations are used to finance nearly 50% of North Korea’s nuclear missile program.
In summary, North Korea’s ascension in Bitcoin holdings underscores significant implications forglobal cybersecurity and illicit financing. The Lazarus Group’s cyber activities have not only increased the DPRK’s cryptocurrency assets but also funded substantial portions of its military programs, particularly its nuclear initiatives. This development raises concerns regarding the evolving landscape of cryptocurrency security and the risks associated with state-sponsored cybercrime.
Original Source: crypto.news
