North Korea’s Bitcoin Holdings Surpass El Salvador and Bhutan Following Bybit Hack

North Korea has become one of the largest Bitcoin holders globally after a Bybit hack, surpassing El Salvador and Bhutan. The United States leads with 198,109 BTC, while illicit strategies for North Korea raise significant national security concerns. Bybit is actively working to recover stolen funds through a bounty program. The incident underscores the increasing intersection of cybersecurity issues and cryptocurrency risks.

North Korea has emerged as one of the largest government holders of Bitcoin globally, following a significant cryptocurrency theft perpetrated by the Lazarus hacking group. After hacking the cryptocurrency exchange Bybit, these hackers converted a large amount of stolen Ethereum into Bitcoin, allowing North Korea to surpass El Salvador and Bhutan in national Bitcoin holdings. Presently, North Korea ranks as the third-largest government entity in terms of Bitcoin ownership.

The rankings of Bitcoin held by government entities have shifted with North Korea’s advancement. The United States retains its leading position with 198,109 BTC, valued at approximately $16.71 billion. The United Kingdom ranks second, holding 61,245 BTC—primarily acquired through criminal seizures rather than through legal adoption of cryptocurrency like El Salvador. Bhutan manages 10,635 BTC, obtained via mining operations, while El Salvador has dropped to fifth place with 6,117 BTC due to its steady dollar-cost averaging strategy in acquiring Bitcoin.

North Korea’s crypto activities raise significant national security concerns, as the Lazarus Group functions under the guidance of the nation’s intelligence services to fund operations amidst stringent sanctions. The Bybit hack aligns with the ongoing trend of cryptocurrency thefts targeting various platforms, possibly indicating awareness of international Bitcoin market movements among governments. North Korea’s Bitcoin holdings could offer it greater resilience against global pressures, which extends beyond financial profitability.

In response to the theft at Bybit, the exchange has implemented a $140 million bounty initiative, “LazarusBounty,” aimed at recovering the stolen funds. This program rewards individuals who contribute to freezing or recovering the misappropriated assets. Current data reveals that nearly 89% of the total stolen amount is being tracked. To date, only a small number of bounties have been awarded, and there are ongoing efforts to monitor and recover the stolen resources. Given the size of this hack, it remains one of the largest in cryptocurrency history and has significant implications for North Korea’s financial reserves during a period of strict international sanctions.

North Korea’s ascension as a leading Bitcoin holder illustrates the intersection between cybersecurity, cryptocurrency, and national security. The country’s ability to leverage illicit means to enhance its financial standing surpasses legitimate acquisition strategies employed by other nations, raising geopolitical implications. The Bybit hack emphasizes the need for continued vigilance within the cryptocurrency sector, accompanied by ongoing recovery efforts post-theft, while also highlighting the complexities posed by state-sponsored cyber activities in the evolving digital landscape.

Original Source: www.thecoinrepublic.com