North Korea, through the Lazarus group, has become the fifth-largest sovereign Bitcoin holder after stealing over $1.4 billion from Bybit. With 13,518 BTC, it now surpasses Bhutan and El Salvador in holdings, highlighting serious implications for cybersecurity and financial systems, particularly given the ties to funding North Korea’s nuclear program.
Following a significant cyber heist on the cryptocurrency exchange Bybit, North Korea has become the fifth-largest sovereign holder of Bitcoin globally. The North Korean hacking group, Lazarus, succeeded in stealing over $1.4 billion, boosting the nation’s Bitcoin (BTC) reserves to surpass those of Bhutan and El Salvador. According to Arkham data, Lazarus currently controls 13,518 BTC valued at around $1.1 billion.
Lazarus’ cryptocurrency wealth is the culmination of multiple cyber attacks over the years. Key incidents include the 2024 DMM Bitcoin breach, where they stole $308 million, and the 2022 Ronin Network theft amounting to over $600 million. Consequently, North Korea now holds more Bitcoin than Bhutan, which possesses 10,635 BTC accumulated via large-scale mining, and El Salvador, which holds 6,118 BTC as the inaugural nation to recognize Bitcoin as legal tender.
At present, the only countries with larger Bitcoin holdings than North Korea are the United States with 198,109 BTC, China with 194,000 BTC, the United Kingdom with 61,000 BTC, and Ukraine with 46,351 BTC. This shift in North Korea’s cryptocurrency wealth follows Lazarus’ attack on Bybit in February, during which over 400,000 Ether (ETH) were compromised from its cold wallet.
Post-heist, Lazarus leveraged decentralized finance protocols like THORChain to convert a significant portion of the stolen ETH to BTC, facing criticism for their insufficient anti-criminal measures. A White House official noted that proceeds from Lazarus and other DPRK-related illicit activities fund approximately 50% of North Korea’s nuclear missile program, highlighting the serious implications of cybercrime on national security.
This development signifies a major increase in North Korea’s Bitcoin reserves, enabling it to surpass traditional crypto-friendly nations in holdings. The activities of the Lazarus group underscore the intersection of cybercrime and state-sponsored funding, raising concerns about the implications for international security and financial systems. As North Korea continues to bolster its Bitcoin portfolio through illicit means, it raises critical questions about the oversight of cryptocurrency networks.
Original Source: crypto.news
