North Korea Becomes Third Largest Bitcoin Holder After Major Hack

North Korea has amassed 1.7 trillion won in bitcoin, positioning it as the world’s third-largest holder after the U.S. and U.K. This follows a major hack in January, where it stole Ethereum worth 2 trillion won. Analysts debate the potential market impact of North Korea’s holdings, emphasizing that it may be limited due to Bitcoin’s overall trading volume.

North Korea has amassed a substantial amount of bitcoin, totaling 1.7 trillion won, positioning the nation as the third-largest holder globally, following the United States and the United Kingdom. This accumulation follows a significant hacking incident in January where North Korean hackers pilfered 2 trillion won worth of Ethereum from Vibit, the second-largest virtual asset exchange by transaction value.
According to Arkham Intelligence, a blockchain research firm, the infamous Lazarus hacker group from North Korea holds approximately 13,562 bitcoins. In addition, they laundered $1.46 billion of Ethereum seized from Bybit, utilizing Tornado Cash to convert these assets into bitcoin, which are now retained as part of their holdings.
While North Korea ranks third in global bitcoin ownership, the U.S. holds 198,109 bitcoins, and the U.K. possesses 61,245. Following North Korea, Bhutan and El Salvador are also notable holders, with 10,635 and 6,117 bitcoins respectively. The hacking scheme executed by North Korea stands as the most significant single hack within the digital asset sector, comprising more than half of the total virtual asset thefts, amounting to $2.2 billion, recorded last year.
The bitcoin acquired by the United States was predominantly confiscated from the dark web operation “Silk Road”, a notable criminal platform. Last year, the U.K. captured over 60,000 bitcoins while arresting an individual involved in money laundering via virtual assets in London. Unlike these countries, North Korea’s bitcoin accumulation has primarily resulted from cyber theft, contrasting with Bhutan’s legitimate bitcoin mining initiated in 2017 and El Salvador’s governmental purchases of the cryptocurrency.
The hacking incident involved North Korean hackers manipulating the “Safe” security solution by infiltrating the computer of its developer, impacting bi-bit transactions. Many in the market speculate that North Korea will liquidate some of its bitcoin holdings to finance its weapons development programs. Despite apprehension among virtual asset investors concerning the potential market effects due to the substantial holdings, analysts suggest the impact may be minimal based on the larger context. For example, as of 2 p.m. that day, Bitcoin’s global trading volume was $23.2 billion, with North Korea’s holdings equating to approximately $1.1 billion.
Kim Min-seung, head of 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 summary, North Korea’s acquisition of 1.7 trillion won worth of bitcoin places it among the top holders globally. This wealth has primarily been acquired through cyber hacks, raising concerns about potential market disruptions. However, analysts posit that the impact of North Korea’s holdings may be limited given the overall trading volumes of bitcoin. Historical precedents suggest that large sell-offs may not necessarily precipitate market crashes.

Original Source: www.mk.co.kr