Following a substantial theft linked to the Lazarus hacking group, North Korea has surpassed El Salvador and Bhutan to become the third-largest government holder of Bitcoin. The U.S. leads the rankings, while the UK has amassed significant holdings through criminal seizures. North Korea’s Bitcoin strategy poses national security concerns and increases its resilience against international sanctions, while Bybit seeks to recover stolen assets through a bounty program.

North Korea has recently ascended into the top ranks of government Bitcoin holders across the globe following a significant cryptocurrency theft associated with the Lazarus hacking group. This group successfully targeted the cryptocurrency exchange Bybit, converting a considerable amount of stolen Ethereum into Bitcoin. As a result, North Korea surpassed both El Salvador, which holds 6,117 BTC, and Bhutan, with 10,635 BTC, now positioning itself as the third-largest government Bitcoin holder worldwide.

The landscape of Bitcoin distribution among government entities has notably changed due to North Korea’s newfound status. The United States remains the largest government holder with 198,109 BTC, valued at approximately $16.71 billion. The United Kingdom follows as the second-largest holder as a result of criminal seizures, having confiscated 61,245 BTC, equivalent to roughly $5.17 billion. In contrast to El Salvador’s legal tender designation for Bitcoin, the UK’s holdings predominantly stem from law enforcement actions.

Bhutan, which manages its Bitcoin reserves through state-owned Druk Holdings, reports a total of 10,635 BTC, worth around $897.60 million, gained through its hydroelectric-powered mining operations. Meanwhile, El Salvador, although the first country to adopt Bitcoin as legal tender, has fallen to fifth place with its 6,117 BTC, achieved through President Nayib Bukele’s dollar-cost averaging strategy for Bitcoin purchases. This situation results in a paradox where North Korea, using illicit methods, holds more Bitcoin than countries employing legitimate acquisition strategies.

The Lazarus Group, which operates under North Korea’s intelligence services, has made cryptocurrency theft a vital financing strategy amid ongoing sanctions against the nation. The Bybit hack aligns with previous attacks on cryptocurrency platforms, highlighting a broader awareness of global Bitcoin acquisition trends among nations. The geopolitical repercussions of North Korea’s Bitcoin holdings may enhance the regime’s resilience against international pressures beyond mere financial benefits.

In response to the February 21, 2025 hack, Bybit has initiated a significant $140 million bounty program aimed at recovering stolen funds. Named “LazarusBounty,” the initiative incentivizes individuals to assist in freezing and recuperating the stolen assets. Tracking indicates that nearly 89% of the $1.4 billion theft is currently under surveillance. However, only $2,233,947 in bounties has been distributed thus far to 13 bounty hunters. The program allocates 10% of the recovered funds as rewards, with specific percentages designated for entities involved in freezing or reporting the funds. Currently, the hack stands as one of the largest in cryptocurrency history, significantly enhancing North Korea’s financial resources amid stringent international sanctions.

In summary, North Korea’s emergence as a major government Bitcoin holder, surpassing El Salvador and Bhutan, is indicative of the evolving landscape of cryptocurrency holdings among nations. The dubious acquisition strategies of North Korea, in contrast to legitimate efforts by other countries, highlight the complexity of global cryptocurrency dynamics. Furthermore, Bybit’s bounty program reflects ongoing attempts to combat cybercrime in the cryptocurrency sector while revealing the geopolitical implications of North Korea’s financial maneuvers.

Original Source: www.thecoinrepublic.com

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