North Korea has accumulated 1.7 trillion won in bitcoin, making it the third-largest holder globally. The country procured this via significant hacking events, fostering concerns regarding potential market impacts. However, some analysts believe the overall bitcoin market remains robust enough to withstand these developments.
North Korea has amassed bitcoin valued at 1.7 trillion won, positioning itself as the third-largest holder of bitcoin globally, following the United States and the United Kingdom. This accumulation follows a major hack in January, where North Korean operatives compromised Vibit, the second-largest virtual asset exchange by transaction value, resulting in the theft of 2 trillion won in Ethereum.
Arkham Intelligence, a blockchain analytics firm, reported on the 17th that North Korea’s Lazarus hacker group possesses 13,562 bitcoin. Additionally, North Korea allegedly laundered $1.46 billion worth of Ethereum, seized from Bybit in January, through Tornado Cash, and subsequently converted this into bitcoin.
In ranking global bitcoin holdings, North Korea is surpassed only by the United States, which holds 198,109 bitcoin, and the United Kingdom with 61,245 bitcoin. Other notable holders include Bhutan with 10,635 bitcoin and El Salvador with 6,117 bitcoin. Notably, North Korea’s hacking exploits represent one of the largest thefts in history, accounting for over half of the $2.2 billion in virtual assets hacked last year, as reported by Chainalysis.
The U.S. bitcoin reserves largely stem from confiscated assets linked to the Silk Road dark web marketplace. In contrast, North Korea’s bitcoin was primarily obtained through illicit hacking activities, unlike Bhutan, which initiated a legal bitcoin mining industry in 2017, and El Salvador, which engages in national purchasing of bitcoin.
The breach occurred after North Korean hackers accessed a developer’s computer involved with the security solution “Safe,” allowing manipulation of bi-bit transaction screens. Market analysts speculate that North Korea might liquidate some bitcoin holdings to fund its weapons of mass destruction and ballistic missile initiatives, prompting concerns about a potential market disturbance given their substantial worth.
Despite these apprehensions, some experts, such as Kim Min-seung from the Covit Research Center, argue that the potential market impact may be limited, referencing last year’s situation where no major market crash occurred despite the release of 53,679 bitcoin confiscated by the German government. The global bitcoin trading volume remains robust, with CoinMarketCap reporting a recent daily volume of $23.2 billion.
In summary, North Korea’s acquisition of 1.7 trillion won in bitcoin has established it as a significant player in the cryptocurrency landscape, following the U.S. and U.K. The nation’s tactics involve sophisticated hacking to fund its military programs, raising concerns among investors about market ramifications. However, experts suggest that these holdings might not radically disrupt bitcoin trading due to the overall market’s substantial daily activity.
Original Source: www.mk.co.kr
