North Korea Surpasses Bhutan and El Salvador in Bitcoin Holdings Following Bybit Hack

North Korea has become the fifth-largest sovereign Bitcoin holder, surpassing Bhutan and El Salvador, following thefts by the Lazarus group, which controls 13,518 BTC. This organization has acquired wealth through various cyber attacks over the years. The increase in Bitcoin holdings poses concerns over financing for North Korea’s nuclear arms program, given the illicit nature of its acquisitions.

The Democratic People’s Republic of Korea (DPRK) has emerged as the fifth-largest sovereign holder of Bitcoin globally, surpassing Bhutan and El Salvador, following a cyber attack carried out by the North Korean-affiliated Lazarus group which stole over $1.4 billion from Bybit. The Lazarus group is reported to possess 13,518 BTC, equating to around $1.1 billion, as per data from Arkham.

This substantial accumulation of Bitcoin has been achieved through a series of cyber attacks and cryptocurrency exploits, including notable incidents such as the 2024 hack of Japanese exchange DMM Bitcoin, which resulted in a theft of $308 million, and the Ronin Network breach in 2022, which saw over $600 million in crypto stolen.

Currently, North Korea’s Bitcoin holdings exceed those of Bhutan, which has 10,635 BTC obtained through extensive mining operations, and El Salvador’s 6,118 BTC, the latter having been the first nation to designate Bitcoin as legal tender. The only countries with greater Bitcoin holdings than North Korea are the United States, China, the United Kingdom, and Ukraine, with 198,109 BTC, 194,000 BTC, 61,000 BTC, and 46,351 BTC, respectively.

The rapid growth in North Korea’s Bitcoin reserves coincides with the Lazarus group’s attack on the crypto exchange Bybit in February, during which it was reported that over 400,000 Ether (ETH) were stolen from Bybit’s Safe multi-signature cold wallet. The group utilized decentralized finance protocols like THORChain, criticized by both developers and the crypto community for inadequate anti-crime measures, to convert a significant portion of the stolen ETH into Bitcoin.

According to CNN, Lazarus and other DPKR-funded syndicates finance nearly half of North Korea’s nuclear missile program using the proceeds from such illicit activities. This highlights the concerning intersection of cybercrime, cryptocurrency, and national security issues.

In summary, North Korea’s rise in Bitcoin holdings can be attributed to the activities of the Lazarus cybercrime group, which has executed multiple successful attacks to fund significant national interests, including the nuclear missile program. The country’s Bitcoin wealth now ranks fifth globally, crossing thresholds that involve former crypto-friendly nations Bhutan and El Salvador. The implications of such developments raise critical concerns regarding cyber security and the use of cryptocurrency in financing state-sponsored initiatives.

Original Source: crypto.news