North Korea’s Ascendance in Bitcoin Holdings: A Geopolitical Shift

North Korea has significantly increased its Bitcoin holdings after hacking Bybit, surpassing El Salvador and Bhutan to achieve the third-largest position globally among governments. The shift in Bitcoin distribution poses security concerns, as North Korea leverages stolen assets amidst international sanctions. Meanwhile, Bybit’s recovery efforts, including a bounty program, are underway to retrieve stolen funds from this substantial hack.

North Korea has emerged as a significant holder of Bitcoin, ranking third globally among government entities, following a substantial hack linked to the Lazarus hacking group at cryptocurrency exchange Bybit. The country has converted a notable fraction of its stolen Ethereum into Bitcoin, surpassing both El Salvador, which holds 6,117 BTC, and Bhutan, with 10,635 BTC, in national Bitcoin reserves. This has drawn attention to the growing dynamics of cryptocurrency ownership among nations.

The landscape of government Bitcoin holdings is shifting, with the United States leading with 198,109 BTC valued at $16.71 billion. The United Kingdom holds the second position, primarily due to seizures from criminal activities, amounting to 61,245 BTC (approximately $5.17 billion). In contrast, Bhutan has achieved its Bitcoin position through regulated mining operations harnessing hydroelectric power. El Salvador, although pioneering Bitcoin as legal tender, ranks fifth due to its gradual acquisition strategy.

The implications of North Korea’s acquisition of Bitcoin raise serious national security concerns. The Lazarus Group has transformed cryptocurrency theft into a significant financial avenue for the state, which faces stringent international sanctions. The timing of the Bybit hack coinciding with potential shifts in U.S. Bitcoin strategy highlights the geopolitical awareness among governments regarding cryptocurrency.

In response to the February 21, 2025, Bybit hack, the exchange has initiated a $140 million bounty program named “LazarusBounty” to recover the stolen funds. This program incentivizes cooperation from the public, offering a 10% reward on amounts recovered, along with further allocations for freezing efforts and initial reports. Real-time monitoring indicates that roughly 89% of the $1.4 billion total theft is currently being tracked, emphasizing the severity of this incident as one of the largest in cryptocurrency history, fortifying North Korea’s financial resources amid ongoing sanctions.

In conclusion, North Korea’s emergence as a major Bitcoin holder highlights the evolving dynamics of cryptocurrency ownership among nations. The country’s use of illicit means to bolster its Bitcoin reserves has overshadowed legal acquisition strategies employed by other nations, such as El Salvador and Bhutan. Furthermore, the Bybit hack’s repercussions illustrate the urgent need for enhanced security measures in the cryptocurrency sector and reflect the broader geopolitical implications of national cryptocurrency strategies.

Original Source: www.thecoinrepublic.com