North Korea has ascended to be among the world’s top Bitcoin holders after a significant hack attributed to the Lazarus group, surpassing El Salvador and Bhutan. The shift in Bitcoin holdings among government entities raises national security concerns as North Korea utilizes cryptocurrency theft to bolster its financial position amidst sanctions. Bybit has initiated a recovery program for the stolen assets, tracking nearly 89% of the funds.
North Korea has risen to become one of the top government holders of Bitcoin globally, following a significant cryptocurrency theft attributed to the Lazarus hacking group. By targeting the cryptocurrency exchange Bybit, these North Korean-affiliated hackers converted a considerable amount of stolen Ethereum into Bitcoin. This conversion has allowed North Korea to surpass both El Salvador and Bhutan’s Bitcoin holdings, now ranking as the third-largest governmental Bitcoin holder.
The distribution of Bitcoin among governmental entities has notably shifted with North Korea’s ascent. The United States continues to lead with a substantial holding of 198,109 BTC, valued at approximately $16.71 billion, while the United Kingdom holds the second-largest amount due to criminal asset seizures, totaling 61,245 BTC (about $5.17 billion). In contrast, Bhutan’s Bitcoin reserves amount to 10,635 BTC, representing $897.60 million, derived from its hydroelectric-powered mining operations. El Salvador, despite its status as the first nation to adopt Bitcoin as legal tender, now ranks fifth with 6,117 BTC through gradual dollar-cost averaging purchases.
Implications of North Korea’s Bitcoin holdings extend to national security concerns, as the Lazarus Group operates under the direction of North Korean intelligence and uses cryptocurrency theft as a funding mechanism to navigate international sanctions. The Bybit hack is indicative of a series of similar operations against cryptocurrency platforms, suggesting an increasing awareness of cryptocurrency dynamics among global state actors. Such holdings may enhance North Korea’s resilience against global economic pressure.
In an effort to recover funds stolen during the February 21, 2025 hack, Bybit has introduced a $140 million bounty program named “LazarusBounty.” This initiative aims to incentivize individuals who can assist in freezing and retrieving the stolen assets, offering rewards structured to distribute 10% of recovered funds. Current tracking indicates that almost 89% of the stolen $1.4 billion is under surveillance, while a small portion has been successfully frozen. The hack represents one of the largest thefts in cryptocurrency history, significantly augmenting North Korea’s financial reserves amid stringent international sanctions.
In summary, North Korea has emerged as a key player in the realm of cryptocurrency by surpassing major nations in Bitcoin holdings, primarily due to a significant hack on Bybit. The implications of these holdings raise serious concerns regarding national security, demonstrating the potential for illicit funding mechanisms to provide resilience against global sanctions. Furthermore, recovery efforts from the hack continue with Bybit’s bounty program, highlighting the ongoing challenges in combating cybercrime in the cryptocurrency space.
Original Source: www.thecoinrepublic.com
