North Korea has become the world’s third-largest holder of Bitcoin, accumulating 1.7 trillion won. The country secured these assets largely through hacking activities, including the theft of Ethereum, raising concerns about its potential use in funding weapons programs. However, analysts suggest minimal market impact given the large daily Bitcoin trading volumes.
North Korea has amassed 1.7 trillion won in Bitcoin, positioning itself as the world’s third-largest Bitcoin holder, following the United States and the United Kingdom. In January, the country gained notoriety for hacking Vibit, the second-largest virtual asset exchange, resulting in the theft of 2 trillion won in Ethereum. According to blockchain analyst Arkham Intelligence, the North Korean hacker group Lazarus currently holds 13,562 Bitcoin.
The laundered amount of $1.46 billion in Ethereum, seized from Bybit, was converted into Bitcoin using Tornado Cash. The ranking of Bitcoin holders places North Korea third globally, with only the U.S. at 198,109 Bitcoin and the U.K. at 61,245 Bitcoin ahead of it. Following North Korea, Bhutan holds 10,635 Bitcoin, while El Salvador retains 6,117 Bitcoin.
The hacking incident is recorded as one of the largest in history, with Chainalysis reporting it accounts for more than half of the total $2.2 billion in virtual asset hacks recorded last year. In contrast, the Bitcoin confiscated by the U.S. is linked to the Silk Road dark web, while the U.K. recently arrested a Chinese individual for money laundering, seizing over 60,000 Bitcoin.
North Korea primarily acquired Bitcoin through hacking, unlike Bhutan, which began its Bitcoin mining initiative in 2017, or El Salvador, which engages in national Bitcoin purchases. The breach occurred when North Korean hackers infiltrated the security solution “Safe,” manipulating the software used for bi-bit transactions.
The prevailing market sentiment suggests that North Korea may soon liquidate its Bitcoin holdings to fund its weapons of mass destruction and ballistic missile programs. This potential action raises concerns among virtual asset investors regarding market implications due to the scale of 1.7 trillion won.
However, analysts advise caution, noting that the global Bitcoin trading volume is substantial. As reported by CoinMarketCap, the global trading volume of Bitcoin was approximately $23.2 billion within the last 24 hours, with North Korea’s holdings representing around $1.1 billion. Kim Min-seung, head of the Covit Research Center, remarked on North Korea’s likely intention to liquidate Bitcoin, but highlighted an earlier event where the market remained stable following the sale of 53,679 Bitcoin seized by the German government last year.
In summary, North Korea’s acquisition of Bitcoin, now valued at 1.7 trillion won, reinforces its position as a significant player in the cryptocurrency market, primarily acquired through illicit hacking activities. While this raises concerns regarding the potential liquidation of these assets to finance military endeavors, analysts believe that the overall impact on the global market may be minimal, given the current trading volume and past experiences of similar asset sales.
Original Source: www.mk.co.kr
