North Korea’s Cryptocurrency Holdings Surge Following Major Bybit Hack

North Korea has become the third-largest Bitcoin-holding government following a $1.46 billion hack by the Lazarus Group, enhancing its holdings to 13,562 BTC (approximately $1.14 billion). The U.S. and U.K. lead in Bitcoin ownership, while North Korea’s hacking operations pose significant risks to global finance, as it launders funds to support military programs.

North Korea has recently ascended to the position of the third-largest government Bitcoin holder, largely due to a staggering $1.46 billion hack involving Bybit, a major cryptocurrency exchange. On February 21, the Lazarus Group, a cybercriminal organization linked to the North Korean regime, executed a heist that resulted in the theft of approximately 401,000 Ethereum (ETH). Subsequently, a significant portion of these stolen funds was converted into Bitcoin, raising North Korea’s total Bitcoin holdings to 13,562 BTC, valued at roughly $1.14 billion.

Currently, the United States maintains its rank as the largest holder of Bitcoin among governments, commanding 198,109 BTC, worth around $16.71 billion, closely followed by the United Kingdom with 61,245 BTC, valued at approximately $5.17 billion. North Korea’s recent acquisition has allowed it to surpass both Bhutan, which holds 10,635 BTC (approximately $898 million), and El Salvador, with 6,117 BTC (about $516 million). This development occurred just prior to the signing of an executive order by U.S. President Donald Trump on March 6, establishing the Strategic Bitcoin Reserve (SBR).

Despite international efforts to trace and freeze the assets obtained through these thefts, North Korean hackers have successfully laundered around $300 million from the Bybit incident. Tom Robinson, co-founder of blockchain analytics firm Elliptic, remarked, “Every minute matters for the hackers who are trying to confuse the money trail, and they are extremely sophisticated in what they’re doing.” The laundering of stolen assets has become increasingly complex, with concerns that these funds are being utilized to support North Korea’s military and nuclear ambitions.

The United States and its allies have accused North Korea of conducting numerous cryptocurrency hacks over the past decade. The Lazarus Group, initially focused on bank targets, has now entirely shifted its attention to cryptocurrency exchanges in recent years. Experts have raised alarms over the evolving tactics of the group, highlighting the escalating risks they pose to the global financial infrastructure.

In summary, North Korea has significantly increased its cryptocurrency holdings and now ranks as the third-largest government Bitcoin holder following a major hack of Bybit. The implication of this cyber theft underscores the potential for these illicit funds to finance North Korea’s military initiatives. The situation highlights the overarching threat posed by such cybercriminal organizations to the global financial landscape, necessitating vigilant monitoring and responsive action from international entities.

Original Source: theins.ru