North Korea has become the third-largest government Bitcoin holder following a Bitcoin conversion of stolen Ethereum linked to a Bybit hack by the Lazarus Group. This moves North Korea past both El Salvador and Bhutan in Bitcoin holdings. As geopolitical dynamics shift, Bybit has launched a bounty program aimed at recovering significant funds lost in the hack, one of the largest in cryptocurrency history.
North Korea has emerged as a significant player in the realm of Bitcoin holdings, now ranking as the third-largest governmental Bitcoin holder globally. This development comes after a major cryptocurrency theft linked to the Lazarus hacking group, which targeted the cryptocurrency exchange Bybit, successfully converting a large portion of the stolen Ethereum into Bitcoin. Consequently, North Korea’s holdings have surpassed those of El Salvador, with 6,117 BTC, and Bhutan, with 10,635 BTC.
The distribution of Bitcoin holdings among government entities is evolving as North Korea enters the fray. The United States remains the leader with a staggering 198,109 BTC valued at approximately $16.71 billion. The United Kingdom, holding 61,245 BTC (about $5.17 billion) through criminal seizures, follows—differentiating its approach from that of El Salvador, which established Bitcoin as legal tender. Bhutan’s 10,635 BTC, managed by state-owned Druk Holdings, has been obtained primarily through hydroelectric-powered mining operations.
This shift positions North Korea, a sanctioned nation, above countries that have employed legitimate methods to acquire Bitcoin. The Lazarus Group’s hacking activities have become integral to North Korea’s economic strategy, providing funding amidst sanctions. Experts indicate that the timing of the Bybit hack, occurring shortly before significant U.S. cryptocurrency announcements, suggests a strategic awareness of international Bitcoin trends among nation-states.
In response to the February 21st hack, Bybit has launched the “LazarusBounty” program, promising a $140 million bounty for information leading to the recovery of stolen funds. Nearly 89% of the $1.4 billion stolen during this incident is being actively monitored. To date, only $2,233,947 in bounties has been awarded to 13 bounty hunters, highlighting the program’s ongoing efforts to recover these funds. The dashboard indicates that 88.97% of the assets are being tracked, with a small percentage frozen and others awaiting responses from exchanges.
The hack represents one of the most significant cryptocurrency thefts in history, enhancing North Korea’s financial standing during a period of stringent international sanctions, and highlighting the complex interplay between crime and state finances in the cryptocurrency landscape.
In summary, North Korea’s ascension to the third-largest governmental Bitcoin holder reflects a significant shift in Bitcoin ownership dynamics, propelled by illicit activities. The Lazarus hacking group’s activities underscore emerging trends in global cryptocurrency acquisition, revealing both the resourcefulness of sanctioned states and the growing implications for international relations. Meanwhile, Bybit’s innovative bounty recovery program aims to reclaim these stolen funds, illustrating ongoing efforts to mitigate the impact of such breaches.
Original Source: www.thecoinrepublic.com
