North Korea has emerged as the third-largest Bitcoin holder due to the Lazarus hacking group’s theft linked to an attack on Bybit. This shift places North Korea above both El Salvador and Bhutan in national Bitcoin holdings. The situation raises national security concerns regarding cryptocurrency theft as funding for sanctioned regimes, while Bybit initiates a bounty program to recover the stolen funds.
North Korea has emerged as a significant Bitcoin holder after a major cryptocurrency theft linked to the Lazarus hacking group. Following a successful cyber attack on cryptocurrency exchange Bybit, hackers connected to North Korea converted a considerable amount of stolen Ethereum into Bitcoin. This maneuver has elevated North Korea above both El Salvador and Bhutan, placing it as the third-largest government Bitcoin holder globally.
The shifting landscape of Bitcoin ownership among government entities now prominently features North Korea’s position. The United States remains the largest holder with 198,109 BTC valued at $16.71 billion, while the UK’s second spot is primarily due to criminal seizures, totaling 61,245 BTC ($5.17 billion). In contrast to El Salvador’s legal tender approach, the UK’s holdings stem from law enforcement actions. Bhutan, managing its 10,635 BTC ($897.60 million) through Druk Holdings, has built its reserves through hydroelectric-powered mining operations. Meanwhile, El Salvador, the first to recognize Bitcoin as legal tender, has dropped to fifth place with 6,117 BTC.
North Korea’s activity exposes significant national security concerns, particularly as the Lazarus Group, reportedly linked to North Korean intelligence, utilizes cryptocurrency theft as a funding method amidst tightening sanctions. The February Bybit attack reflects a series of targeted operations against cryptocurrency platforms, suggesting North Korea’s strategic awareness of global trends in Bitcoin. The financial gains from these activities could enhance the regime’s resilience against international pressures.
In response to the Bybit hack, the exchange has introduced a $140 million bounty program, known as “LazarusBounty,” aimed at recovering the stolen funds. Participants can receive rewards for freezing and retrieving stolen assets, with 89% of the $1.4 billion theft currently under monitoring. Despite the extensive tracking, only $2,233,947 in bounties has been distributed to date, illustrating the challenges in asset recovery. The Bybit hack, one of the largest thefts in cryptocurrency history, has effectively strengthened North Korea’s financial reserves, compounding the challenges posed by international sanctions.
North Korea has markedly increased its Bitcoin holdings through illicit methods, surpassing both El Salvador and Bhutan. As the third largest holder globally, its activities highlight significant national security implications, particularly as it leverages cryptocurrency theft for strategic financial resilience. The ongoing bounty program by Bybit reveals the complexities in recovering stolen assets, while North Korea’s position underscores the evolving dynamics of government cryptocurrency holdings.
Original Source: www.thecoinrepublic.com
