North Korea Surpasses El Salvador and Bhutan in Bitcoin Holdings
North Korea holds 13,562 Bitcoins, valued at over $1 billion, making it the third-largest holder among governments, following the US and UK. This accumulation is driven primarily by cyber thefts executed by the Lazarus Group, with significant incidents like the Bybit hack contributing to its reserves. The strategic conversion of stolen cryptocurrencies into Bitcoin helps North Korea navigate international sanctions and supports its military and espionage operations.
North Korea has amassed a substantial total of 13,562 Bitcoins, valued at over $1 billion. This positions the country as the third-largest holder of Bitcoin among governments, surpassing El Salvador and Bhutan. The majority of this accumulation can be attributed to cybercriminal activities conducted by the state-sponsored Lazarus Group, which has been engaged in sophisticated hacks aimed at cryptocurrency platforms.
The Lazarus Group has exploited various vulnerabilities to enhance North Korea’s financial standing through cybercrime. The regime strategically converts stolen cryptocurrencies into Bitcoin, primarily due to its liquidity and decentralized nature. This tactic allows North Korea to convert stolen assets efficiently, underscoring Bitcoin’s role as a financial instrument amidst economic sanctions.
One notable incident involved the Bybit hack in February 2025, recognized as one of the largest thefts in cryptocurrency history. The hackers predominantly targeted Ethereum but subsequently converted much of the loot into Bitcoin. The appeal of Bitcoin stems from its ability to provide a means of circumventing international sanctions that primarily affect the country’s economy.
Currently, North Korea’s Bitcoin reserves exceed those of both Bhutan and El Salvador combined. The only governments with larger holdings of Bitcoin are the United States, with 198,109 BTC, and the United Kingdom, with 61,245 BTC. Notably, North Korea’s Bitcoin is acquired through cyber theft rather than conventional means like purchases or asset seizures.
From a geopolitical standpoint, the accumulation of Bitcoin enhances North Korea’s financial leverage. The country reportedly utilizes cryptocurrency to fund military operations, espionage, and the development of weapons. Furthermore, the timing of the Bybit hack, occurring shortly before the United States unveiled its Strategic Bitcoin Reserve initiative, indicates that North Korea may be strategically responding to the dynamics of global Bitcoin accumulation.
In conclusion, North Korea’s acquisition of Bitcoin through cybercriminal activities has positioned it as a significant player in the cryptocurrency market. With holdings surpassing those of El Salvador and Bhutan, North Korea capitalizes on the liquidity and decentralization of Bitcoin to enhance its financial capabilities, particularly in the face of international sanctions. The regime’s use of stolen cryptocurrencies for military and espionage activities further emphasizes the geopolitical implications of its Bitcoin reserves.
Original Source: www.fxleaders.com
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