North Korea has surpassed Bhutan and El Salvador to become the fifth-largest sovereign Bitcoin holder, amassing 13,518 BTC after the Lazarus group stole over $1.4 billion from Bybit. The group has accumulated wealth through cyber heists and is believed to use proceeds to fund nearly half of the country’s nuclear missile program.
The Democratic People’s Republic of Korea has ascended to become the fifth-largest sovereign holder of Bitcoin worldwide, overtaking Bhutan and El Salvador. This development is attributed to the Lazarus group, which allegedly stole over $1.4 billion from the crypto exchange, Bybit, effectively increasing North Korea’s Bitcoin holdings to approximately 13,518 BTC valued at around $1.1 billion as per Arkham data.
The Lazarus group has accumulated this vast wealth through various cyberattacks, including the notable DMM Bitcoin exploit in 2024 and the Ronin Network breach in 2022, which yielded $308 million and over $600 million in cryptocurrency, respectively. Consequently, North Korea has now surpassed Bhutan’s 10,635 BTC, primarily amassed through extensive mining, and El Salvador’s 6,118 BTC holdings, the latter being the first nation to legalize Bitcoin as tender.
Currently, only the Bitcoin reserves of the United States, China, the United Kingdom, and Ukraine exceed North Korea’s holdings. The U.S. authorities possess 198,109 BTC, while China has 194,000 BTC. The United Kingdom holds 61,000 BTC, and Ukraine retains a stash of 46,351 BTC.
The increase in North Korea’s cryptocurrency wealth followed a successful Lazarus attack on Bybit in February, where over 400,000 Ether (ETH) was reported stolen from the exchange’s Safe multi-signature cold wallet. The group leveraged decentralized finance protocols, such as THORChain, to convert a substantial portion of the stolen ETH into Bitcoin. According to reports from CNN, proceeds from Lazarus and other North Korean funded syndicates are responsible for financing nearly 50% of the country’s nuclear missile program.
In conclusion, the ascendancy of North Korea to the fifth-largest sovereign Bitcoin holder is largely a consequence of the Lazarus group’s extensive cyber activities, which have significantly augmented its cryptocurrency portfolio. Overcoming countries like Bhutan and El Salvador, the DPRK’s growing Bitcoin wealth raises security concerns, particularly regarding its potential funding of nuclear endeavors. This situation underscores the ongoing challenges faced by the global cryptocurrency landscape in combating cybercrime.
Original Source: crypto.news
