North Korea has emerged as the fifth-largest sovereign holder of Bitcoin, following the Lazarus group’s theft of over $1.4 billion from Bybit. With 13,518 BTC, North Korea now surpasses Bhutan and El Salvador in holdings. This wealth has been accumulated through extensive cyberattacks, and it is noted that nearly 50% of the country’s nuclear program is financed through these illicit activities.
The Democratic People’s Republic of Korea (DPRK) has ascended to become the world’s fifth-largest sovereign holder of Bitcoin following a significant cyber heist conducted by the Lazarus group, which stole over $1.4 billion from Bybit. This event has propelled North Korea’s Bitcoin (BTC) holdings ahead of those of Bhutan and El Salvador, with Lazarus currently controlling 13,518 BTC valued at approximately $1.1 billion according to Arkham data.
Lazarus has amassed this substantial wealth through a series of cyberattacks and cryptocurrency exploits over recent years, including notable incidents like the DMM Bitcoin exploit in 2024 and the Ronin Network attack in 2022, which resulted in the thefts of $308 million and over $600 million in crypto, respectively.
Currently, the Lazarus group surpasses Bhutan’s 10,635 BTC, obtained through extensive Bitcoin mining, and El Salvador’s 6,118 BTC, which is the result of being the first country to officially adopt Bitcoin as legal tender. Only the United States, China, the United Kingdom, and Ukraine maintain larger sovereign Bitcoin portfolios than that of North Korea.
The surge in North Korea’s Bitcoin reserves is directly attributed to Lazarus’ offensive on Bybit, which occurred in February. During this incident, Dubai-based exchange Bybit confirmed that over 400,000 Ether (ETH) was stolen from its multi-sig cold wallet.
Lazarus employed decentralized finance platforms like THORChain to convert a significant portion of the stolen ETH into BTC, despite criticisms from developers and the crypto community regarding inadequate protections against criminal activities. According to a source cited by CNN, a White House official indicated that nearly 50% of North Korea’s nuclear missile program is financed through illicit proceeds from Lazarus and other DPRK-linked organizations.
In summary, North Korea’s ascent in Bitcoin holdings is a direct result of cybercriminal activities orchestrated by the Lazarus group. By becoming the fifth-largest sovereign holder of Bitcoin, surpassing countries like Bhutan and El Salvador, the DPRK demonstrates the significant impact of cryptocurrency theft on national wealth. These illicit activities not only bolster North Korea’s crypto portfolio but also fund critical aspects of its defense programs.
Original Source: crypto.news
