North Korea Rises in Bitcoin Holdings Following Bybit Hack
North Korea, through the Lazarus group, has become the fifth-largest sovereign Bitcoin holder after stealing over $1.4 billion from Bybit. This jump in holdings surpasses Bhutan and El Salvador, with Lazarus controlling approximately 13,518 BTC. The wealth was acquired through various cyberattacks, and the proceeds are believed to fund North Korea’s nuclear program.
The Democratic People’s Republic of Korea (DPRK) has emerged as the fifth-largest sovereign holder of Bitcoin globally, propelled by its linked group Lazarus, which has stolen over $1.4 billion from Bybit. This increase in holdings has surpassed those of crypto-friendly nations like Bhutan and El Salvador. Currently, Lazarus controls approximately 13,518 BTC, valued at around $1.1 billion, as reported by Arkham data.
Lazarus has accumulated this wealth through a series of cyberattacks and crypto thefts, including notable exploits like the DMM Bitcoin attack in 2024, where $308 million was seized, and the Ronin Network hack in 2022, which resulted in over $600 million stolen. As of now, North Korea’s Bitcoin reserves have surpassed Bhutan’s trove of 10,635 BTC, which has been amassed largely through mining operations, and El Salvador’s 6,118 BTC, deriving from its status as the first nation to recognize Bitcoin as legal tender.
Only larger sovereign Bitcoin holdings come from the U.S. with 198,109 BTC, China with 194,000 BTC, the United Kingdom at 61,000 BTC, and Ukraine at 46,351 BTC. North Korea’s dramatic rise in Bitcoin assets follows Lazarus’ attack on Bybit in February 2024, during which the platform reported the theft of over 400,000 Ether (ETH) from its secure multi-signature cold wallet.
The Lazarus group utilized decentralized finance protocols, such as THORChain, which have faced criticism from developers and the crypto community for inadequate anti-criminal safeguards. Reports suggest that the illicit proceeds derived from Lazarus and other DPRK-funded enterprises contribute to nearly half of North Korea’s funding for its nuclear missile program, as stated by a White House official.
In summary, North Korea, through the activities of the Lazarus group, has significantly increased its Bitcoin holdings, now ranking fifth among sovereign nations. This development not only reflects their exploitation of cryptocurrency as an illicit financing method but also underscores the ongoing challenges posed by cybercrime in the digital currency landscape. The implications extend beyond financial gain, as these funds reportedly support North Korea’s nuclear ambitions.
Original Source: crypto.news
