North Korea, through the Lazarus group, has become the fifth-largest sovereign Bitcoin holder, surpassing Bhutan and El Salvador with 13,518 BTC valued at $1.1 billion. This wealth was obtained through a series of cyber attacks, including the Bybit hack, which specifically impacted the cryptocurrency market. The financial gains are linked to funding North Korea’s nuclear missile program, raising international concerns.
The Democratic People’s Republic of Korea (DPRK) has ascended to become the fifth-largest sovereign holder of Bitcoin globally, following a significant theft executed by the Lazarus group, which totaled over $1.4 billion from the Bybit exchange. As of the latest data from Arkham, Lazarus possesses 13,518 BTC, valuing approximately $1.1 billion, surpassing the crypto reserves of Bhutan and El Salvador.
The wealth accumulated by Lazarus derives from a series of high-profile cyber attacks and crypto exploits, including the breach of the Japanese exchange DMM Bitcoin in 2024 and the Ronin Network hack in 2022, which resulted in the theft of $308 million and over $600 million, respectively.
At present, North Korea’s Bitcoin holdings exceed those of Bhutan, which holds 10,635 BTC amassed primarily through large-scale mining, and El Salvador, which has 6,118 BTC as the first nation to adopt Bitcoin as legal tender.
Currently, the only known sovereign Bitcoin portfolios that exceed North Korea’s holdings are those of the United States with 198,109 BTC, China with 194,000 BTC, the United Kingdom with 61,000 BTC, and Ukraine possessing 46,351 BTC.
The substantial increase in North Korea’s Bitcoin assets is attributed to the Lazarus group’s successful infiltration of Bybit in February, where more than 400,000 Ether (ETH) were stolen from the exchange’s Safe multi-signature cold wallet. The group utilized decentralized finance protocols like THORChain to convert a notable quantity of the stolen ETH into BTC. According to CNN, citing a White House official, funds generated by Lazarus and other DPRK-supported entities are estimated to finance nearly 50% of North Korea’s nuclear missile initiatives.
In summary, North Korea’s position as the fifth-largest sovereign holder of Bitcoin underscores the financial gains achieved through cybercrime, specifically stemming from Lazarus’s recent exploits. This development demonstrates the growing significance of digital currencies in financing state-sponsored activities, including military programs. The global implications of this shift in Bitcoin holdings warrant continued scrutiny and response from the international community.
Original Source: crypto.news
