North Korea has secured 1.7 trillion won in Bitcoin, becoming the third-largest holder globally after the U.S. and the U.K. The hacking group Lazarus stole 2 trillion won worth of Ethereum earlier this year, laundering $1.46 billion through Tornado Cash. Analysts express concerns about the potential impact of North Korea’s asset sales on the cryptocurrency market.
North Korea has amassed Bitcoin worth 1.7 trillion won, positioning itself as the world’s third-largest holder of this cryptocurrency, following the United States and the United Kingdom. Earlier this year, North Korea’s hackers infiltrated Vibit, the second-largest virtual asset exchange, and successfully stole 2 trillion won in Ethereum.
According to Arkham Intelligence, the North Korean hacker group Lazarus is believed to control 13,562 Bitcoin. Furthermore, the country laundered $1.46 billion in Ethereum, previously taken from Bybit, through the mixer service Tornado Cash, subsequently converting the assets to Bitcoin for storage. The country’s holdings represent the third largest globally, trailing the U.S. with 198,109 and the U.K. with 61,245.
The hacking incident is noted as the most significant single cyber heist to date. Chainalysis reported that this event contributed to more than half of last year’s total virtual asset hacks, valued at $2.2 billion. The Bitcoin holdings of the U.S. were obtained from the dark web marketplace Silk Road, while the U.K.’s assets were seized from a money laundering operation led by a Chinese national.
In contrast, Bhutan has developed its bitcoin mining sector since 2017, holding 10,635 Bitcoin, and El Salvador has embraced national Bitcoin purchases. The infiltration by North Korean hackers occurred as they manipulated the interface of a security solution used for bi-bit transactions.
Market analysts speculate that North Korea may soon liquidate its Bitcoin holdings to finance its weapons of mass destruction and missile programs, raising concerns about potential market ramifications given the substantial value of 1.7 trillion won. Despite apprehensions, some analysts suggest the potential market impact may be mitigated by the overall high daily trading volume of Bitcoin, which was recorded at $23.2 billion within the previous 24 hours, while North Korea’s holdings are approximately valued at $1.1 billion.
Kim Min-seung of the Covit Research Center remarked that although North Korea is likely to sell its Bitcoin, historical events such as the sale of 53,679 Bitcoin by the German government did not result in a market crash, indicating a possible resilience within the cryptocurrency market.
In conclusion, North Korea’s accumulation of Bitcoin marks a significant development in the cryptocurrency landscape, positioning it as a major player alongside traditional holders like the United States and the United Kingdom. The country’s activities highlight the intersection of cybercrime and virtual assets, raising global concerns about the implications for financial markets and national security. Analysts remain divided on the potential impact of North Korea’s Bitcoin liquidation on the broader cryptocurrency market, citing historical data that suggests resilience against large asset sales.
Original Source: www.mk.co.kr
