North Korea's Lazarus Group has become one of the largest nation-state holders of Bitcoin, surpassing El Salvador and Bhutan, according to Arkham Intelligence.
The hacker group’s BTC reserves surged to 13,518 BTC ($1.13 billion) following the $1.4 billion Bybit hack, making it one of the most significant state-affiliated crypto holders.
Background
- Arkham Intelligence data reveals that North Korea’s Lazarus Group currently holds 13,518 BTC, worth approximately $1.16 billion.
- This places North Korea ahead of Bhutan (10,635 BTC) and El Salvador (6,118 BTC) in terms of Bitcoin reserves.
- Bhutan’s holdings come from its domestic Bitcoin mining operations, while El Salvador has steadily accumulated BTC since making it legal tender in 2021.
- The recent Bybit hack on February 21, considered the largest-ever exchange exploit, played a key role in boosting North Korea’s BTC reserves.
- Following the $1.4 billion Bybit exploit, Lazarus Group swapped a large portion of the stolen Ethereum for Bitcoin, largely using DeFi protocol THORChain.
- Lazarus has a history of large-scale crypto thefts, including:
$615 million stolen from Ronin Network (2022)
$308 million hack on DMM Bitcoin (2023)
- Apart from Bitcoin, Lazarus Group also holds $30 million worth of other cryptocurrencies, including Ethereum (ETH), Binance Coin (BNB), DAI, and BUSD.
Why should you pay attention?
- North Korea’s crypto holdings are growing at an alarming rate, with stolen funds being used to evade sanctions and fund government programs.
- Despite global crackdowns, Lazarus continues to exploit crypto exchanges and DeFi protocols, raising serious security concerns.
- THORChain was used as a major laundering route, highlighting how decentralized finance (DeFi) can be misused for illicit fund transfers.
- U.S. officials have previously warned that North Korea funds up to 50% of its weapons of mass destruction (WMD) program using stolen crypto, making these attacks a national security threat.
- This further raises the urgency for stronger crypto regulations and improved cybersecurity measures across exchanges and DeFi protocols.
Who said what?
- A White House official in 2023 warned about North Korea’s crypto-driven funding, stating:
“Around half of North Korea’s WMD and missile programs are financed through cyberattacks and cryptocurrency theft.”
Zooming out
- The U.S. remains the largest known Bitcoin holder, with 198,109 BTC ($16.5 billion), as it prepares to build a strategic Bitcoin reserve using assets seized from criminal and civil cases.
- The U.K. holds the second-largest national Bitcoin reserve, with 61,245 BTC, further highlighting nation-states' growing involvement in crypto holdings.
- North Korea’s rise in Bitcoin ownership highlights the role of crypto in geopolitics, where nation-states, sanctioned regimes, and criminal organizations compete for digital financial power.
- Decentralized finance (DeFi) platforms like THORChain face increasing scrutiny, as bad actors continue to exploit them for illicit transactions.
- The Lazarus Group's continued success in high-profile hacks raises concerns about cybersecurity weaknesses, pushing for stronger defense measures from crypto exchanges and DeFi protocols.
