North Korea has become the fifth-largest sovereign Bitcoin holder globally, surpassing Bhutan and El Salvador after Lazarus stole over $1.4 billion from Bybit. The cyberattacks that contributed to this wealth illustrate ongoing concerns regarding the use of cryptocurrency in funding illicit programs, particularly North Korea’s nuclear ambitions.
The Democratic People’s Republic of Korea (DPRK) has emerged as the fifth-largest sovereign holder of Bitcoin globally, surpassing both Bhutan and El Salvador, following a significant cyber theft. The North Korean state-backed group, Lazarus, reportedly stole over $1.4 billion from the crypto exchange Bybit, amassing approximately 13,518 BTC, valued at approximately $1.1 billion, according to data from Arkham.
The Lazarus group has gathered this wealth through various cyberattacks over the years, including the 2024 hack on Japan’s DMM Bitcoin, which resulted in the theft of $308 million, and the 2022 Ronin Network breach that netted over $600 million. Presently, this group holds more Bitcoin than the 10,635 BTC that Bhutan acquired primarily through extensive mining efforts and El Salvador’s 6,118 BTC, as it became the first nation to accept BTC as legal tender.
The only sovereign Bitcoin reserves that exceed North Korea’s holdings include those of the United States, with 198,109 BTC; China, with 194,000 BTC; the United Kingdom, holding 61,000 BTC; and Ukraine, which possesses 46,351 BTC. The stark increase in North Korea’s Bitcoin assets correlates with Lazarus’ hacking of Bybit in February. Reports indicate that over 400,000 Ether (ETH) was stolen from Bybit’s secure cold wallet.
Lazarus utilized decentralized finance protocols such as THORChain, which faced criticism from developers and the cryptocurrency community for inadequate anti-crime measures, to convert a substantial portion of the stolen ETH to BTC. According to information sourced from CNN, a White House official stated that the proceeds from Lazarus and other DPRK-linked enterprises fund nearly 50% of North Korea’s nuclear missile program.
In conclusion, North Korea’s ascent to being the fifth-largest sovereign Bitcoin holder illustrates the significant impact of cybercrime on the global cryptocurrency landscape. The successful hacking of Bybit by Lazarus not only enhanced North Korea’s Bitcoin reserves but also highlights ongoing concerns about the misuse of cryptocurrency to fund illicit activities, such as the country’s nuclear ambitions. The situation underscores the need for improved security measures within cryptocurrency exchanges and the wider digital finance ecosystem.
Original Source: crypto.news
