North Korea Becomes Major Bitcoin Holder After Bybit Cyber Attack

North Korea has become the fifth-largest sovereign Bitcoin holder after Lazarus stole over $1.4 billion from Bybit. The DPRK’s Bitcoin holdings now surpass those of Bhutan and El Salvador, with an accumulation derived from significant cyber exploits. The growth in Bitcoin wealth carries implications for financing North Korea’s missile program, raising concerns about the security of cryptocurrencies.

The Democratic People’s Republic of Korea (DPRK) has ascended to become the fifth-largest sovereign Bitcoin holder globally, following a significant theft perpetrated by the North Korean cyber group Lazarus, which stole over $1.4 billion from the crypto exchange Bybit. Lazarus now controls 13,518 BTC, valued around $1.1 billion, surpassing the holdings of crypto-friendly nations such as Bhutan and El Salvador.

This substantial Bitcoin accumulation was primarily achieved through a series of cyberattacks and cryptocurrency exploits over the years, including notable incidents like the DMM Bitcoin hack in 2024 and the Ronin Network breach in 2022. In these events, Lazarus successfully stole $308 million and more than $600 million in cryptocurrency, respectively.

Currently, Lazarus’s Bitcoin stash exceeds Bhutan’s 10,635 BTC, obtained mainly through extensive mining operations, and El Salvador’s 6,118 BTC, which is significant as El Salvador was the first country to officially adopt Bitcoin as legal tender. The only sovereign Bitcoin holdings that surpass North Korea’s are those of the United States (198,109 BTC), China (194,000 BTC), United Kingdom (61,000 BTC), and Ukraine (46,351 BTC).

The notable increase in North Korea’s Bitcoin wealth can be traced back to Lazarus’s attack on Bybit in February, during which over 400,000 Ether (ETH) was stolen from its secure cold wallet. Lazarus effectively utilized decentralized finance (DeFi) protocols like THORChain to convert a substantial portion of the stolen ETH into Bitcoin, highlighting the vulnerabilities within the DeFi landscape.

As reported by CNN and a White House official, it is estimated that the illicit funds acquired by Lazarus, alongside other DPKR-linked operations, contribute to nearly 50% of North Korea’s nuclear missile program financing.

In conclusion, North Korea’s rise as a major Bitcoin holder is largely attributed to the successful cyber exploits of the Lazarus group, marking a significant leap over other sovereign holders. The evolution in their Bitcoin holdings raises concerns about the potential financing of illicit activities, particularly North Korea’s nuclear program. The hacking incidents present serious implications for cryptocurrency security and governance.

Original Source: crypto.news