North Korea has accumulated over $1 billion worth of Bitcoin (BTC) following the recent hack of the crypto exchange Bybit, which saw over $1.5 billion taken from the platform’s wallets.
North Korea Among Top Nations Holding Bitcoin
North Korea’s Lazarus Group became one of the largest Bitcoin holders in the world after the massive Bybit hack on February 21. Arkham data shows that the North Korea-linked hacking group has accumulated a significant amount of crypto through its exploits.
According to the data, the Lazarus group now holds 13,518 Bitcoin, valued at $1.15 billion at current prices, with most of these holdings added last month. The on-chain data platform shows that from February 22 to February 24, the hacking group added around 13,000 BTC and held over 14,000 Bitcoin, valued at around $1.5 billion, until last week.
For context, Bybit, one of the largest crypto exchanges, suffered the largest exploit on record almost a month ago. The Dubai-based exchange lost $1.5 billion in Ethereum (ETH) at the hands of the North Korean hacking group, as the US Federal Bureau of Investigation (FBI) and various security platforms revealed.
The hackers started laundering the funds through different platforms, bridging around 400,000 ETH to Bitcoin via THORchain by March 3. As blockchain intelligence platform TMR explained, “The North Koreans finished the initial phase of laundering the proceeds of the Bybit hack. All of the stolen ETH has now been moved to new addresses, with the vast majority bridged to Bitcoin, mostly via services using THORchain.”
As a result, North Korea’s stash has now surpassed other Bitcoin-holding nations like El Salvador and Bhutan, which possess 6,118 BTC and 10,634 BTC, respectively. Moreover, their BTC holdings now sit behind the US’s 198,109 BTC and the UK’s 61,245 BTC.
Strategic BTC Reserve Funded By Exploits?
Binance co-founder Changpeng Zhao, known as CZ, reacted to the news on X. He responded to a post stating that North Korea is the third-largest nation holding the flagship crypto, jokingly suggesting that they are building a Strategic Bitcoin Reserve (SBR) uniquely.
“Different ways to build a strategic crypto reserve,” CZ pointed out, noting that, unlike the top-holding governments that acquired BTC through purchases or seizures, North Korea has accumulated their crypto stashes through illegal activities.
Nonetheless, many community members consider CZ’s suggestion as a reasonable suspicion amid the global push to establish crypto asset reserves at a national level. As reported by Bitcoinist, US President Donald Trump recently signed an executive order to create an SBR with the nation’s seized BTC and a “Digital Asset Stockpile.”
This initiative has received significant support from Republican lawmakers who have introduced several legislations to codify the President’s executive order and establish crypto reserves at a national and state level.
Meanwhile, other countries have remained skeptical about developing an SBR. Recently, the Swiss National Bank (SNB) Chief rejected the idea of adding BTC to its national reserves, citing its price fluctuations as a major concern.
Similarly, The Bank of Korea (BOK) recently revealed that it has “neither discussed nor reviewed the possible inclusion of Bitcoin in foreign exchange reserve” and that a “cautious approach is needed” due to the asset’s volatility.
