North Korea has surpassed El Salvador and Bhutan to become the third-largest government Bitcoin holder after hacking Bybit and converting stolen Ethereum into Bitcoin. The distribution of Bitcoin among governments is shifting, with the U.S. and U.K. holding the highest amounts through various means. North Korea’s strategic use of cryptocurrency theft raises concerns regarding national security and geopolitical stability. Bybit has initiated a bounty program to recover stolen assets from the hack.
North Korea has emerged as a noteworthy player in global Bitcoin holdings, reportedly surpassing both El Salvador and Bhutan following a significant theft linked to the Lazarus hacking group. Following the Bybit exchange hack, North Korean-affiliated hackers converted a large portion of stolen Ethereum into Bitcoin, solidifying North Korea’s status as the third-largest government Bitcoin holder worldwide, with holdings exceeding El Salvador’s 6,117 BTC and Bhutan’s 10,635 BTC.
Bitcoin distribution among government entities has shifted as countries adopt varying strategies toward cryptocurrency. The United States retains its leading position with 198,109 BTC valued at $16.71 billion, while the United Kingdom holds a substantial amount through criminal seizures, amassing 61,245 BTC ($5.17 billion). Bhutan has also quietly built its holdings through state-managed mining operations, while El Salvador’s pioneering status as the first nation to adopt Bitcoin as legal tender now places it in fifth with 6,117 BTC, mainly accumulated through incremental dollar-cost averaging by President Nayib Bukele.
North Korea’s rise in the Bitcoin rankings illustrates the nation’s strategic considerations regarding cryptocurrency. The Lazarus Group’s operations, sanctioned by North Korean intelligence, indicate a shift in funding mechanisms through cryptocurrency theft, particularly in a context of international sanctions. Cybersecurity experts believe the timing of the Bybit attack correlates with notable events in the crypto landscape, highlighting possible strategic awareness from state actors regarding global Bitcoin acquisition trends.
In efforts to recover the stolen funds from the Bybit hack, the exchange has initiated the “LazarusBounty” program, offering a $140 million bounty for information leading to the freezing and recovery of the assets. Currently, 88.97% of the total $1.4 billion theft is being tracked. To date, only 13 bounty hunters have been awarded a total of $2,233,947, with the bounty program structured to provide rewards based on successful fund recovery and tracking.
In conclusion, North Korea’s rise in Bitcoin holdings post-Bybit hack underscores a pivotal shift in the global cryptocurrency landscape, wherein a sanctioned entity can outpace countries utilizing legitimate acquisition methods. As the dynamics of Bitcoin holdings evolve, the tactical applications of cryptocurrency by states amplify potential geopolitical concerns and financial implications. Additionally, recovery efforts led by Bybit reflect ongoing challenges in securing assets within the cryptocurrency ecosystem, amidst escalating theft incidents.
Original Source: www.thecoinrepublic.com
