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

North Korea now ranks as the third-largest holder of Bitcoin globally, following a major hack linked to the Lazarus group targeting Bybit. The nation’s holdings exceed those of El Salvador and Bhutan, reflecting a significant shift in cryptocurrency ownership dynamics among governments. The hack has prompted substantial recovery efforts from Bybit, highlighting the intertwining of cryptocurrency and international security concerns.

North Korea has emerged as a significant player in global Bitcoin holdings, surpassing both El Salvador and Bhutan after a massive theft involving the Bybit cryptocurrency exchange, linked to the Lazarus hacking group. Following this breach, the hackers converted a large portion of stolen Ethereum into Bitcoin, elevating North Korea to the third-largest government holder of Bitcoin worldwide, trailing only the United States and the United Kingdom.

The cryptocurrency landscape has shifted, with the United States leading with 198,109 BTC, valued at approximately $16.71 billion. The United Kingdom holds the second-largest Bitcoin reserve, comprising 61,245 BTC due to criminal seizures from various operations. Conversely, Bhutan has built its Bitcoin reserves, totaling 10,635 BTC, through efficient mining strategies leveraging its hydroelectric power. El Salvador, which previously led the legal adoption of Bitcoin, now occupies the fifth position with 6,117 BTC, acquired gradually through President Nayib Bukele’s dollar-cost averaging approach.

North Korea’s aggressive acquisition of Bitcoin highlights national security issues, as the Lazarus Group, directed by North Korean intelligence, uses cryptocurrency theft as a means of circumventing international sanctions. Observers note that the timing of the Bybit hack coincided with heightened discussions regarding the U.S. Strategic Bitcoin Reserve, indicating the regime’s astute awareness of the evolving geopolitical landscape of cryptocurrencies.

In response to the Bybit hack, the exchange has launched a $140 million bounty program named “LazarusBounty” aimed at recovering stolen funds. This initiative incentivizes individuals to aid in freezing and tracing stolen assets, offering rewards based on recovered amounts. Current reports indicate that nearly 89% of the $1.4 billion theft is being monitored, with various stages of recovery actively tracked. Although only a small portion of the stolen funds has been successfully frozen, efforts continue at a significant scale to reclaim these assets and mitigate the impact of the breach.

In summary, North Korea’s rise in Bitcoin holdings due to the Bybit hack underscores a troubling trend, where illicit acquisition methods surpass legitimate strategies employed by other nations. This situation poses national security concerns globally, as the cryptocurrency space continues to evolve. Efforts for recovery of the stolen funds are critical, and the consequences of this hack may have lasting impacts on the geopolitical and financial landscape.

Original Source: www.thecoinrepublic.com