North Korea’s Expanding Bitcoin Holdings: A Comprehensive Analysis
In a startling development in the cryptocurrency world, North Korea has reportedly amassed over $1 billion worth of Bitcoin (BTC) following a significant security breach at the crypto exchange Bybit. This incident saw over $1.5 billion siphoned from the platform’s wallets, drawing global attention to the financial activities of the secretive nation.
North Korea Rises as a Major Bitcoin Holder
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The notorious Lazarus Group, a cyber hacking entity linked to North Korea, has emerged as one of the largest Bitcoin holders globally. This status was achieved following the high-profile Bybit hack on February 21. Data from Arkham highlights that this hacking group has successfully garnered a substantial amount of cryptocurrency through various illicit means.
Lazarus Group’s Bitcoin Accumulation
Recent data reveals that the Lazarus Group currently possesses 13,518 Bitcoin, valued at approximately $1.15 billion based on current market prices. The majority of these holdings were acquired in the past month. On-chain analysis indicates that between February 22 and February 24, the group added around 13,000 BTC to their reserves, maintaining over 14,000 Bitcoin valued at about $1.5 billion until very recently.
Details of the Bybit Exploit
Bybit, a prominent crypto exchange, experienced the largest exploit in its history nearly a month ago. The Dubai-based platform lost $1.5 billion in Ethereum (ETH) to the North Korean hackers, a fact confirmed by the US Federal Bureau of Investigation (FBI) and other cybersecurity organizations. Following the hack, the stolen funds were laundered through various platforms, with approximately 400,000 ETH being converted to Bitcoin via THORchain by March 3.
According to blockchain intelligence platform TMR, “The North Koreans have completed the initial phase of laundering the proceeds from the Bybit hack. All stolen ETH has been transferred to new addresses, with the majority now converted to Bitcoin, primarily using services like THORchain.”
North Korea’s Bitcoin Holdings in Global Context
North Korea’s Bitcoin stash now surpasses those of other Bitcoin-holding countries such as El Salvador and Bhutan, which hold 6,118 BTC and 10,634 BTC, respectively. However, their Bitcoin reserves still trail behind the United States, holding 198,109 BTC, and the United Kingdom, with 61,245 BTC.
Is North Korea Building a Strategic Bitcoin Reserve?
Binance co-founder Changpeng Zhao, known as CZ, weighed in on the development via social media platform X. He commented on the news, humorously suggesting that North Korea might be building a “Strategic Bitcoin Reserve” in a unique manner.
“Different ways to build a strategic crypto reserve,” CZ remarked, highlighting that unlike other top-holding governments that acquired Bitcoin through legitimate purchases or seizures, North Korea has amassed its crypto assets through unauthorized activities.
Despite the humorous tone, many in the cryptocurrency community view CZ’s comments as a reasonable hypothesis. This comes amid increasing global interest in establishing national crypto asset reserves. For instance, former US President Donald Trump signed an executive order to create a Strategic Bitcoin Reserve using the nation’s seized BTC, alongside a “Digital Asset Stockpile.” This initiative has garnered substantial backing from Republican lawmakers, who have proposed legislation to formalize the executive order and create crypto reserves at both national and state levels.
Contrastingly, several countries remain cautious about developing such reserves. The Swiss National Bank (SNB) Chief recently dismissed the idea of adding Bitcoin to national reserves, citing concerns over its price volatility. Similarly, the Bank of Korea (BOK) has stated that it has “neither discussed nor reviewed the potential inclusion of Bitcoin in its foreign exchange reserves,” emphasizing a “cautious approach” due to the asset’s instability.
Current Market Insights
As of the latest data, Bitcoin is trading at $82,976 on the one-week chart, reflecting ongoing market fluctuations and the dynamic nature of cryptocurrency valuations.
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