North Korea has become the world’s third-largest holder of Bitcoin, with 1.7 trillion won worth. The country has utilized hacking techniques to acquire and launder large amounts of cryptocurrency. The potential market impact of their Bitcoin holdings has raised investor concerns, although analysts believe the market can withstand it.
North Korea has reportedly accumulated 1.7 trillion won worth of Bitcoin, positioning itself as the third-largest holder globally, behind the United States and the United Kingdom. In January, the country executed a significant hack on Vibit, the world’s second-largest virtual asset exchange, acquiring Ethereum valued at 2 trillion won. According to blockchain analysts at Arkham Intelligence, the North Korean hacker collective known as Lazarus holds approximately 13,562 Bitcoin.
Following the hack, North Korea laundered $1.46 billion in Ethereum seized from Bybit through Tornado Cash and subsequently converted these assets to Bitcoin. In terms of Bitcoin holdings, North Korea ranks third internationally, trailing the United States which possesses 198,109 Bitcoin, and the United Kingdom with 61,245 Bitcoin. In comparison, Bhutan holds 10,635 Bitcoin and El Salvador has 6,117 Bitcoin.
The hacking incident by North Korea is noted as one of the most significant in history, contributing more than half to last year’s total virtual asset hacking amount of $2.2 billion, according to Chainalysis. The Bitcoin confiscated by the U.S. originated from the dark web marketplace, Silk Road, while the U.K. arrested an individual involved in laundering Bitcoin in London, seizing a substantial quantity.
In contrast, Bhutan commenced its Bitcoin mining operations in 2017, while El Salvador actively pursues a national strategy to acquire Bitcoin. The hacking operation involved North Korean hackers gaining access to the developer’s computer for a security solution named “Safe” to manipulate its transaction interface.
Markets speculate that North Korea may liquidate its Bitcoin holdings to fund its weapons of mass destruction and missile programs, raising concerns among virtual asset investors about market stability given the magnitude of 1.7 trillion won. However, some analysts assert that the global trading volume of Bitcoin is substantial enough to mitigate significant market disruption. CoinMarketCap reported that Bitcoin’s trading volume reached $23.2 billion in the 24 hours prior to this report, indicating that North Korea’s holdings equate to roughly $1.1 billion.
Kim Min-seung, Head of the Covit Research Center, articulated, “It is clear that North Korea will cash in Bitcoin, but there was no crash when 53,679 seized by the German government came to the market last year.”
In summary, North Korea’s acquisition of 1.7 trillion won in Bitcoin places it among the top holders globally. The illicit means of obtaining this cryptocurrency raises concerns regarding its potential use in funding military programs. While there are fears regarding market implications, analysts suggest that the overall Bitcoin market is robust enough to absorb such transactions.
Original Source: www.mk.co.kr
