North Korea has become the fifth-largest sovereign holder of Bitcoin, largely due to over $1.4 billion stolen by the Lazarus Group from Bybit. This increase has pushed its holdings beyond those of Bhutan and El Salvador. The funds acquired are reportedly fueling a significant portion of the country’s nuclear missile program.
The Democratic People’s Republic of Korea (DPRK) has recently ascended to become the fifth-largest sovereign holder of Bitcoin globally. This change is attributed to the Lazarus Group, which reportedly stole over $1.4 billion from the cryptocurrency exchange Bybit. As a result of this acquisition, North Korea’s Bitcoin holdings now exceed those of Bhutan and El Salvador, with Lazarus controlling an estimated 13,518 Bitcoin valued at around $1.1 billion, according to Arkham data.
The Lazarus Group has accumulated this wealth through various cyberattacks and exploitations within the cryptocurrency realm. Notable incidents include the hack of the Japanese exchange DMM Bitcoin in 2024 and the takedown of the Ronin Network in 2022, resulting in thefts of $308 million and over $600 million, respectively. The group’s activities have positioned North Korea’s holdings above Bhutan’s 10,635 Bitcoin, which stem from large-scale mining operations, and El Salvador’s 6,118 Bitcoin, marking it as the first nation to recognize Bitcoin as legal tender.
Currently, only four sovereign Bitcoin reserves are larger than that of North Korea. These include the U.S. authorities, holding 198,109 Bitcoin, China with 194,000 Bitcoin, the United Kingdom at 61,000 Bitcoin, and Ukraine at 46,351 Bitcoin. The sudden influx in North Korea’s Bitcoin wealth followed a targeted attack by Lazarus on Bybit in February, during which the exchange reported that over 400,000 Ether (ETH) had been taken from its Safe multi-signature cold wallet.
In the aftermath of the Bybit hack, Lazarus leveraged decentralized finance protocols, such as THORChain, which received criticism for inadequate measures against criminal activity. A significant portion of the stolen ETH was converted to Bitcoin. As highlighted by a CNN report referencing a White House official, funds generated by Lazarus and other syndicates affiliated with North Korea reportedly finance nearly 50% of the nation’s nuclear missile initiatives.
The recent surge in North Korea’s Bitcoin holdings positions the nation as a significant player within the cryptocurrency space, surpassing countries known for their crypto engagement. This is largely due to the Lazarus Group’s cybercriminal activities that have yielded substantial profits. The implications of such illicit wealth are further underscored by its connection to the financing of North Korea’s nuclear program, raising concerns about the intersection of cybercrime and state-sponsored initiatives.
Original Source: crypto.news
