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

North Korea has emerged as the fifth-largest sovereign holder of Bitcoin after Lazarus stole over $1.4 billion from Bybit. This group controls 13,518 BTC, surpassing Bhutan’s 10,635 BTC and El Salvador’s 6,118 BTC. North Korea’s Bitcoin holdings rank behind only those of the U.S., China, the U.K., and Ukraine, with Lazarus’ theft tied to financing for the nation’s nuclear missile program.

The Democratic People’s Republic of Korea (DPRK) has become the fifth-largest sovereign holder of Bitcoin globally, following a significant cyber heist executed by the North Korean-affiliated Lazarus group. This attack resulted in the theft of over $1.4 billion from the Bybit exchange, elevating North Korea’s Bitcoin holdings above those of Bhutan and El Salvador. Currently, Lazarus controls 13,518 BTC, approximating a value of $1.1 billion, based on recent data from Arkham.

Lazarus has accumulated this wealth through various cyberattacks and cryptocurrency exploits over the years, such as the DMM Bitcoin hack in 2024, where it stole $308 million, and the infamous Ronin Network breach in 2022, which resulted in losses exceeding $600 million. While Bhutan has mined 10,635 BTC and El Salvador retains 6,118 BTC, Lazarus’ illicit actions have resulted in North Korea commanding a larger Bitcoin portfolio than both nations combined.

In terms of sovereign Bitcoin holdings, only the United States (198,109 BTC), China (194,000 BTC), the United Kingdom (61,000 BTC), and Ukraine (46,351 BTC) hold more Bitcoin than North Korea. The surge in the nation’s Bitcoin wealth correlates with Lazarus’ February attack on Bybit, which disclosed the theft of over 400,000 Ether from its secure multi-signature cold wallet.

Following the attack, Lazarus utilized decentralized finance protocols such as THORChain to convert a substantial quantity of the stolen Ether into Bitcoin. Reports indicate that the proceeds from Lazarus, along with other illegal earnings from DPRK-funded operations, account for nearly 50% of North Korea’s funding for its nuclear missile program, according to insights from a White House official.

In conclusion, North Korea’s rise as a sovereign Bitcoin powerhouse underscores the substantial impact of cybercrime in the cryptocurrency realm. The Lazarus group’s activities have positioned the nation above established crypto-friendly countries like Bhutan and El Salvador, highlighting the risks associated with the security of digital assets. The intertwining of illicit funds and state-sponsored programs further raises concerns about the implications of cryptocurrency in geopolitical contexts.

Original Source: crypto.news