North Korea ranks fifth globally in Bitcoin holdings with over 13,500 BTC worth approximately $1.1 billion, mainly acquired through theft by the Lazarus Group. In contrast, other leading nations, such as the USA and China, have gained their Bitcoin primarily through confiscation. The future handling of North Korea’s Bitcoin raises concerns about potential market impacts and funding for military activities.
Recent data reveals that North Korea is positioned as the fifth highest holder of Bitcoin globally, amassing over 13,500 BTC, valued at approximately $1.1 billion. This amount represents around 6.3% of North Korea’s GDP of roughly $16 billion. Unlike other nations, this cryptocurrency was not obtained through confiscation or donations but primarily through theft, particularly by the notorious Lazarus Group. This group is believed to be supported by Kim Jong-un’s regime and has conducted numerous cyber thefts worldwide.
North Korea’s ranking placed it behind the United States, which holds almost 200,000 BTC, and China, with 190,000 BTC, both primarily confiscated. The United Kingdom follows with over 61,000 BTC and Ukraine has over 46,000 BTC, largely received as donations. Additionally, Bhutan and El Salvador are noteworthy, holding more than 10,000 and 6,000 BTC respectively; Bhutan mined its coins while El Salvador purchased them.
The Lazarus Group is responsible for the majority of North Korea’s Bitcoin, engaging in sophisticated cybercriminal activities for state gain. A notable incident involved a breach of the Bybit exchange, where they reportedly stole over 400,000 ETH, valued at around $1.5 billion at that time. This theft significantly boosted the group’s cryptocurrency holdings from an initial 1,300 BTC to more than 13,500 BTC, establishing North Korea as a major player in the Bitcoin space.
As North Korea possesses a considerable amount of Bitcoin, the future implications of this holding are significant. Authorities speculate that the state may utilize these funds to finance military initiatives. However, liquidating such assets will likely not occur via traditional exchanges due to tracking, which could lead to asset seizure. Historical sales, like when Germany liquidated some of its holdings, suggest that any potential sale from North Korea might not heavily disrupt market prices.
North Korea’s emergence as the fifth-largest holder of Bitcoin reflects a concerning trend in global cybercrime. Predominantly acquiring these assets through theft, particularly via the Lazarus Group, underlines the use of cryptocurrency by state-supported criminals. The implications of this significant Bitcoin holding extend beyond mere valuation, potentially influencing North Korea’s military financing and future market stability.
Original Source: en.cryptonomist.ch
