North Korea's Bitcoin Holdings Surge 130% After Bybit Hack

North Korea has quietly amassed a significant amount of Bitcoin, vaulting into the top ranks of global Bitcoin holders. The Democratic People’s Republic of Korea now holds approximately 13,518 BTC, valued at around $1.12 billion, according to blockchain analytics firm Arkham Intelligence. This positions North Korea as the third-largest nation-state holder of Bitcoin, surpassing Bhutan, which holds 10,635 BTC worth $887.5 million, and El Salvador, with 6,118 BTC.

Bhutan's Bitcoin holdings are primarily a result of its extensive domestic mining efforts, which began in 2019. The Himalayan nation has leveraged its abundant hydroelectric power to sustain its mining strategy. In contrast, El Salvador adopted Bitcoin as its legal tender in 2021 and has been actively purchasing the cryptocurrency since then.

The dramatic increase in North Korea's Bitcoin holdings can be attributed to the state-sponsored Lazarus Group's hack on the Bybit exchange on February 21. In the largest-ever heist on a digital asset exchange, Lazarus stole $1.5 billion in crypto assets by taking control of Bybit’s cold wallet. The hackers subsequently converted a portion of the stolen Ethereum (ETH) into Bitcoin using the decentralized exchange THORChain.

Prior to the Bybit hack, the Lazarus Group had conducted numerous cyber attacks against cryptocurrency companies worldwide. Notable incidents include a $308 million theft from a Japanese firm and a $625 million heist from the Ronin Network in 2022. In addition to Bitcoin, Lazarus holds approximately $30 million worth of other cryptocurrencies, including ETH, BNB, and USDT.

Despite North Korea's significant increase in Bitcoin holdings, the United States remains the world's largest Bitcoin holder, with a stockpile of 198,109 BTC valued at $17 billion. The United Kingdom follows in second place, holding 61,245 BTC worth approximately $4.05 billion.

The Lazarus Group's activities have not only bolstered North Korea's Bitcoin reserves but also underscored the risks associated with cybercrime in the cryptocurrency space. The group's sophisticated cyberattacks have raised concerns about the security of cryptocurrency exchanges and the potential for state-backed hacking organizations to exploit vulnerabilities in the system. The recent hack on Bybit serves as a stark reminder of the need for enhanced security measures and regulatory oversight in the cryptocurrency industry.