North Korea has become the fifth-largest sovereign Bitcoin holder, surpassing Bhutan and El Salvador, after the Lazarus Group stole $1.4 billion from Bybit. The group’s accumulation of Bitcoin results from various cyber attacks, and its proceeds allegedly fund a significant portion of North Korea’s nuclear weapon programs.
North Korea has emerged as the world’s fifth-largest holder of Bitcoin, surpassing nations like Bhutan and El Salvador. This shift follows a significant cyber heist carried out by the Lazarus Group, which stole over $1.4 billion from the crypto exchange, Bybit. At present, Lazarus controls around 13,518 BTC, approximately valued at $1.1 billion based on current market rates according to Arkham data.
The Lazarus Group, linked to North Korean state-sponsored activities, acquired its Bitcoin wealth through a series of high-profile cyber attacks over the years. Notable exploits include the DMM Bitcoin hack in 2024, resulting in a theft of $308 million, and the Ronin Network breach in 2022, where they stole over $600 million in cryptocurrency. This accumulation has positioned North Korea ahead of Bhutan, which has 10,635 BTC from large-scale mining, and El Salvador, holding 6,118 BTC as its legal tender.
The only sovereign entities with larger Bitcoin reserves 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. North Korea’s ascent in the Bitcoin rankings is notably linked to Lazarus’ cyber attack on Bybit, where reports indicated that over 400,000 Ether (ETH) were stolen from the exchange’s secure cold wallet.
Following the Bybit breach, Lazarus used decentralized finance protocols, such as THORChain, to convert a significant amount of stolen ETH into Bitcoin, despite criticism from the crypto community regarding weak anti-criminal measures. A White House official indicated that the illicit gains from Lazarus and other DPRK-funded groups finance nearly 50% of North Korea’s nuclear missile development program.
North Korea’s rise in Bitcoin holdings underscores the significant risks posed by cyber crime in the crypto space. The Lazarus Group’s activities highlight the intersection of cryptocurrency and state-sponsored endeavors, particularly in financing military programs. As nations grapple with these cybersecurity challenges, monitoring the movements of stolen assets remains crucial for global security and regulatory frameworks.
Original Source: crypto.news
