North Korea has surged to become the fifth-largest sovereign Bitcoin holder globally, surpassing Bhutan and El Salvador, following a significant cyber theft by the Lazarus Group. They control 13,518 BTC worth around $1.1 billion, primarily acquired through cyberattacks. This raises concerns about the funding of North Korea’s nuclear program, as nearly 50% of its financing reportedly comes from illicit gains.
The Democratic People’s Republic of Korea (DPRK) has emerged as the world’s fifth-largest sovereign holder of Bitcoin, surpassing both Bhutan and El Salvador. This development follows a significant cyber theft conducted by the Lazarus Group, which reportedly stole over $1.4 billion from the crypto exchange Bybit. Currently, Lazarus controls 13,518 BTC, totaling about $1.1 billion at the time of reporting, according to data from Arkham.
The Lazarus Group has accumulated this wealth through a series of cyberattacks and cryptocurrency exploits, including the DMM Bitcoin attack in 2024 and the Ronin Network hack in 2022, where they stole sums of $308 million and over $600 million, respectively. This illicit activity has positioned North Korea above Bhutan, which has managed to hold 10,635 BTC through extensive crypto mining, and El Salvador, which possesses 6,118 BTC, having been the first nation to recognize Bitcoin as legal tender.
In the hierarchy of sovereign Bitcoin holdings, North Korea now ranks behind only the United States, possessing 198,109 BTC; China, with 194,000 BTC; the United Kingdom, holding 61,000 BTC; and Ukraine, with 46,351 BTC. The leap in North Korea’s Bitcoin assets is attributed to the Lazarus attack on Bybit in February, where reports indicated that more than 400,000 Ether (ETH) were stolen from the exchange’s cold wallet.
Following the theft, Lazarus utilized decentralized finance protocols, such as THORChain, despite criticism from developers and the crypto community concerning their insufficient anti-crime measures, to convert a substantial portion of the stolen ETH into Bitcoin. According to CNN, citing a White House official, the funds obtained through such illicit activities significantly contribute to nearly 50% of North Korea’s nuclear missile program financing.
In summary, North Korea’s rise to the position of the fifth-largest sovereign Bitcoin holder reflects the growing impact of cybercrime on global cryptocurrency markets. The Lazarus Group’s strategic cyber exploits have provided the DPRK with significant financial resources, which serve to further its controversial nuclear ambitions. As the landscape of Bitcoin ownership continues to evolve, the implications of state-sponsored cyber theft warrant closer scrutiny by both the crypto community and regulatory bodies.
Original Source: crypto.news
