North Korea Surpasses El Salvador and Bhutan in Bitcoin Holdings Following Bybit Hack
North Korea has become the third-largest government holder of Bitcoin following a hacking incident involving Bybit. The rise in Bitcoin holdings has shifted the rankings, with the U.S. and U.K. leading. The strategic implications of such holdings are notable given the sanctions faced by North Korea, and Bybit has initiated a bounty program to recover stolen assets worth $1.4 billion.
North Korea has emerged as a significant player in the global Bitcoin landscape, now ranking as the third-largest government holder of Bitcoin after surpassing both El Salvador and Bhutan. This shift follows a significant hacking incident involving the cryptocurrency exchange Bybit, attributed to the North Korean-affiliated Lazarus hacking group, which converted a large amount of stolen Ethereum into Bitcoin.
The Bitcoin holdings among government entities have witnessed a considerable redistribution. The United States retains its lead with 198,109 BTC valued at $16.71 billion, while the United Kingdom stands next with 61,245 BTC, primarily acquired through law enforcement seizures. In contrast to El Salvador, which recognized Bitcoin as legal tender, the UK’s holdings stem from criminal confiscations.
Bhutan has established its position with 10,635 BTC, effectively managed by state-owned Druk Holdings, largely through hydroelectric-powered mining operations. Meanwhile, El Salvador, although initially groundbreaking for adopting Bitcoin as legal tender, has fallen to fifth place with holdings of 6,117 BTC, accumulating gradually through a dollar-cost averaging strategy employed by President Nayib Bukele.
The strategic moves of North Korea in the cryptocurrency field indicate a growing national security concern, as the Lazarus Group utilizes cryptocurrency theft as a primary funding source amid international sanctions. The recent attack on Bybit occurred shortly before tensions heightened in the U.S., which may reflect North Korea’s awareness of global trends in Bitcoin acquisition.
In response to the Bybit hacking incident, the exchange has initiated a $140 million bounty program, dubbed “LazarusBounty,” aimed at recovering the stolen assets. This initiative offers financial rewards for individuals who assist in tracking and freezing the stolen funds, with nearly 89% of the theft currently under observation. Only a small percentage of the rewards have been distributed to bounty hunters so far, highlighting the ongoing challenge of recovering stolen cryptocurrency assets.
The recent rise of North Korea as a prominent holder of Bitcoin underscores the changing dynamics of cryptocurrency ownership among government entities. Despite the ethical implications of their acquisition methods, North Korea’s actions raise significant national security and geopolitical concerns. Moreover, the ongoing efforts by Bybit to recover the stolen funds reflect the challenges faced by regulators and law enforcement in securing the cryptocurrency sector against such sophisticated hacking tactics. This situation prompts further examination of cryptocurrency’s role in global finance and governance.
Original Source: www.thecoinrepublic.com
