North Korea has become the fifth-largest sovereign Bitcoin holder after the Lazarus Group stole over $1.4 billion from Bybit. Controlling 13,518 BTC, North Korea surpasses Bhutan and El Salvador’s holdings. This wealth has been amassed through various cyber exploits. The rise follows the February Bybit attack and raises concerns over the funding of North Korea’s nuclear programs with illicit crypto gains.

The Democratic People’s Republic of Korea (DPRK) has positioned itself as the fifth-largest sovereign holder of Bitcoin globally after a cyberattack by the Lazarus Group, which resulted in the theft of over $1.4 billion from the Bybit exchange. The Lazarus Group now controls 13,518 BTC, equivalent to approximately $1.1 billion, surpassing the Bitcoin holdings of both Bhutan and El Salvador.

North Korea’s significant Bitcoin wealth has been acquired through various cyber crimes over the years, including notable exploits such as the DMM Bitcoin breach in 2024, where $308 million was stolen, and the 2022 Ronin Network hack, which resulted in a loss of over $600 million. Consequently, Lazarus has outstripped Bhutan’s holdings of 10,635 BTC and El Salvador’s 6,118 BTC, showcasing a worrying trend amid international scrutiny of the country’s activities.

The United States holds the largest sovereign Bitcoin reserve at 198,109 BTC, followed by China with 194,000 BTC, the United Kingdom at 61,000 BTC, and Ukraine with 46,351 BTC. These figures highlight that North Korea has now emerged as a significant player in the global cryptocurrency landscape within the context of state-backed holdings.

The increase in North Korea’s Bitcoin wealth follows the Lazarus Group’s February attack on Bybit, where over 400,000 Ether (ETH) was stolen from a multi-signature cold wallet. Reports indicate that Lazarus utilized decentralized finance solutions such as THORChain to convert a large amount of the stolen ETH into BTC, raising concerns about the security practices in the cryptocurrency community. A White House official noted that the proceeds from Lazarus and other DPRK affiliates contribute nearly 50% to the funding of North Korea’s nuclear weapons programs.

In summary, North Korea’s recent ascension in Bitcoin holdings highlights the ongoing threats posed by state-sponsored cybercrime. The Lazarus Group’s actions have not only elevated the nation’s cryptocurrency status but have also raised important questions regarding the security measures within the decentralized finance sector. As the world continues to grapple with the implications of such cyberattacks, the connection between cryptocurrency and the funding of illicit state activities remains a pressing concern.

Original Source: crypto.news

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