North Korea’s Lazarus Group has become the fifth-largest holder of Bitcoin, surpassing Bhutan and El Salvador, after stealing over $1.4 billion from Bybit. Lazarus currently controls 13,518 BTC, which was acquired through various cyberattacks. This rise positions North Korea just behind the U.S., China, the U.K., and Ukraine in terms of sovereign Bitcoin holdings.
North Korea has now become the fifth-largest sovereign holder of Bitcoin, outpacing Bhutan and El Salvador, following a significant theft by the Lazarus Group, which stole over $1.4 billion from the cryptocurrency exchange Bybit. The Lazarus Group, which is linked to North Korea, currently holds 13,518 BTC, valued at approximately $1.1 billion as per Arkham data.
This substantial increase in Bitcoin holdings can be attributed to a series of cyberattacks and cryptocurrency thefts over the years. Notably, these include the DMM Bitcoin hack in 2024, during which Lazarus stole $308 million, as well as the Ronin Network breach in 2022, that resulted in an additional theft of over $600 million in cryptocurrency.
Currently, Lazarus’s Bitcoin reserves exceed those of Bhutan, which has accumulated 10,635 BTC primarily through extensive mining operations, and El Salvador, which holds 6,118 BTC as it is recognized as the first country to adopt Bitcoin as legal tender.
The only sovereign Bitcoin portfolios larger than North Korea’s are held by the United States (198,109 BTC), China (194,000 BTC), the United Kingdom (61,000 BTC), and Ukraine (46,351 BTC). The recent growth in North Korea’s Bitcoin wealth is largely a consequence of Lazarus’s cyberattack on Bybit in February, where over 400,000 Ether (ETH) were reportedly taken from their Safe multi-signature cold wallet.
Following this breach, Lazarus utilized decentralized finance protocols such as THORChain, which had faced scrutiny for inadequate anti-criminal measures, to convert a significant portion of the stolen ETH into BTC. According to a report by CNN referencing a White House official, the illicit assets controlled by Lazarus and other North Korean-linked groups contribute to nearly 50% of the funding for the nation’s nuclear missile program.
In summary, North Korea’s ascent to the fifth-largest sovereign Bitcoin holder is a direct result of cybercriminal activities led by the Lazarus Group. With significant Bitcoin reserves amassed through hacking exploits, the country has surpassed the Bitcoin holdings of known crypto-friendly nations. This raises concerns about the potential financing of North Korea’s military ambitions, including its nuclear missile program, through illicit cryptocurrency transactions.
Original Source: crypto.news
