North Korea Becomes World’s Third-Largest Bitcoin Holder Amidst Concerns
North Korea has accumulated Bitcoin worth 1.7 trillion won, becoming the world’s third-largest holder. Hackers have seized significant amounts of Ethereum and laundered funds through various methods. Market analysts predict potential selling by North Korea could impact prices, but daily trading volumes suggest limited effects.
North Korea has amassed 1.7 trillion won worth of Bitcoin, placing it as the third-largest holder globally, following the United States and the United Kingdom. In January, the nation allegedly hacked Vibit, the world’s second-largest virtual asset exchange, leading to a theft of approximately 2 trillion won worth of Ethereum.
According to blockchain analysts from Arkham Intelligence, the North Korean hacker group Lazarus currently possesses 13,562 Bitcoin. Additionally, they laundered $1.46 billion in Ethereum seized from Bybit on January 21 using Tornado Cash, subsequently converting it into Bitcoin for retention.
North Korea’s Bitcoin reserves rank third globally, behind the U.S. with 198,109 and the U.K. with 61,245. Following North Korea are Bhutan with 10,635 Bitcoin and El Salvador with 6,117. The hacking incident remains the largest ever recorded, constituting more than half of the total virtual asset hacking amounting to $2.2 billion last year.
While the United States acquired Bitcoin through confiscations from the dark web, specifically from the Silk Road, North Korea’s Bitcoin holdings resulted from hacking activities. Bhutan has engaged in Bitcoin mining since 2017, while El Salvador is making national purchases of the cryptocurrency.
The hacking incident involved North Korean hackers manipulating the developer’s screen of the security solution “Safe” utilized in Bi-bit transactions. Market analysts anticipate that North Korea may sell its Bitcoin holdings, primarily to fund its weapons of mass destruction and ballistic missile initiatives. This prospect raises concerns among virtual asset investors regarding potential market impacts due to the significant scale of 1.7 trillion won.
Conversely, some analysts argue that the overall effect on the market may be negligible given the substantial daily trading volume of Bitcoin, reported at $23.2 billion as of 2 p.m. on a recent day. North Korea’s holdings translate to around $1.1 billion. Kim Min-seung from the Covit Research Center noted, “It is clear that North Korea will cash in Bitcoin, but there was no crash when 53,679 seized by the German government came to the market last year.”
In conclusion, North Korea’s acquisition of 1.7 trillion won in Bitcoin marks a significant position in the global crypto landscape, raising concerns regarding its potential sale to fund military initiatives. Despite the scale of these holdings, analysts suggest market impacts may be contained due to Bitcoin’s high trading volume. The situation highlights the dual nature of cryptocurrency, both as a financial asset and a tool for illicit activities.
Original Source: www.mk.co.kr
