North Korea's Bitcoin Holdings Surge 1,000% to $1.14 Billion via Cyberattacks

North Korea has significantly increased its Bitcoin holdings, now possessing 13,562 BTC valued at approximately $1.14 billion. This surge in cryptocurrency reserves has positioned North Korea as the third-largest government entity holding Bitcoin, surpassing Bhutan and El Salvador. The United States remains the largest holder with 198,109 BTC, followed by the United Kingdom with 61,245 BTC.

The recent increase in North Korea's Bitcoin holdings can be attributed to a significant cyberattack on the Bybit cryptocurrency exchange. The Lazarus Group, a state-backed hacking collective, orchestrated this attack, resulting in the theft of $1.4 billion worth of crypto assets, primarily Ethereum. The group then converted the stolen Ethereum into Bitcoin, utilizing decentralized protocols such as THORChain to obscure the movement of illicit funds.

This is not the first time North Korea has been involved in high-profile cryptocurrency thefts. The Lazarus Group has been linked to several other major hacks, including the $615 million Ronin Bridge hack in 2022 and a $308 million attack on a Japanese crypto firm. In total, North Korean-backed cybercrimes have resulted in over $3 billion being stolen in the last five years, making it the largest nation-state actor in the crypto space.

North Korea's accumulation of Bitcoin through cybercrime stands in contrast to the methods used by other countries. Bhutan's Bitcoin reserves of 10,635 BTC were acquired through state investments in mining and strategic purchases. Similarly, El Salvador adopted Bitcoin as legal tender in 2021 and has accumulated its holdings through direct market buys.

The growing Bitcoin reserves of North Korea have serious global implications. A 2023 White House report stated that North Korea funds around 50% of its weapons of mass destruction and missile programs using cybercrime and cryptocurrency thefts. U.S. authorities are actively working to freeze and seize North Korean assets, but the decentralized nature of blockchain transactions makes this a challenging task.

In response to these developments, the United States is considering establishing a Strategic Bitcoin Reserve using assets seized from criminal investigations and civil forfeitures. This move, if implemented, would further solidify Bitcoin's role in global financial strategies. North Korea's growing Bitcoin holdings highlight how cybercr