North Korea has become the fifth-largest sovereign holder of Bitcoin, surpassing Bhutan and El Salvador. This rise is due to the Lazarus group’s theft of over $1.4 billion from Bybit, amassing 13,518 BTC. Cyber exploits have significantly increased North Korea’s Bitcoin wealth, raising concerns about affiliated funding for its nuclear missile program.
The Democratic People’s Republic of Korea (DPRK) has risen to become the fifth-largest sovereign holder of Bitcoin, surpassing both Bhutan and El Salvador. This development follows a significant cyber theft of over $1.4 billion orchestrated by the North Korean cybercriminal group, Lazarus, which now commands 13,518 BTC, valued at approximately $1.1 billion as per Arkham data.
Lazarus has amassed this considerable Bitcoin wealth through various cyber attacks and crypto exploits over several years. Notable incidents include the DMM Bitcoin exploit in 2024 and the Ronin Network hack in 2022, where Lazarus stole $308 million and over $600 million in cryptocurrency, respectively.
Currently, North Korea’s Bitcoin holdings exceed those of Bhutan, which has accumulated 10,635 BTC through extensive mining practices, and El Salvador, which possesses 6,118 BTC as the first country to adopt Bitcoin as legal tender.
Only the U.S. with 198,109 BTC, China with 194,000 BTC, the United Kingdom holding 61,000 BTC, and Ukraine with a total of 46,351 BTC, have larger known sovereign Bitcoin portfolios than North Korea.
The recent increase in North Korea’s Bitcoin assets is linked to Lazarus’ attack on Bybit in February, during which the Dubai-based exchange reported the theft of over 400,000 Ether (ETH) from its Safe multi-signature cold wallet. Lazarus utilized decentralized finance protocols, such as THORChain, to convert part of the stolen ETH into Bitcoin. According to CNN, citing a White House official, the proceeds from Lazarus and other DPRK-funded operations are believed to finance nearly 50% of North Korea’s missile program.
In summary, North Korea’s swift rise in Bitcoin holdings is attributed to the activities of the Lazarus group, specifically the cyber theft from Bybit. This development sees the DPRK leapfrogging more crypto-friendly nations, highlighting the challenges posed by cybercrime in the cryptocurrency landscape. The significant accumulation of Bitcoin raises important questions regarding the funding of illicit activities, including North Korea’s nuclear program, through such means.
Original Source: crypto.news
