North Korea Has Even More Bitcoin Than El Salvador, Bhutan Thanks To $1.5 Billion Bybit Hack
As the world watches with bated breath as the United States prepares to launch its Strategic Bitcoin Reserve, a new player has emerged in the global Bitcoin landscape. The Democratic People's Republic of Korea, also known as North Korea, has quietly vaulted into the top holders of Bitcoin globally, taking third place among nation-states.
The country's stash of around 13,518 coins is valued at a whopping $1.12 billion, according to blockchain analytics firm Arkham Intelligence. This makes North Korea the third largest nation-state holder of BTC, surpassing even Bhutan and El Salvador in terms of Bitcoin reserves.
Bhutan: The Hidden Mining Gem
Bhutan has been steadily building its Bitcoin stash through its domestic mining efforts, which began in 2019. The Himalayan nation has capitalized on its abundant hydroelectric power to sustain its mining strategy, making it a unique player in the global crypto landscape.
According to Arkham Intelligence, Bhutan holds an impressive 10,635 BTC worth $887.5 million, demonstrating the country's commitment to its digital asset holdings.
El Salvador: The Bitcoin Pioneer
El Salvador has been a pioneer in adopting Bitcoin as its legal tender since 2021. The country has been actively buying up and holding onto Bitcoin, with a total of 6,118 coins worth an estimated $400 million.
The government's enthusiasm for Bitcoin is evident, but it remains to be seen how effective this approach will be in driving economic growth and development.
The Lazarus Group: A State-Sponsored Hack
North Korea's massive boost in Bitcoin holdings can be attributed to the state-sponsored Lazarus Group's hack on the Bybit exchange on February 21. The group made away with a staggering $1.5 billion in crypto assets, including Ethereum (ETH), after taking control of Bybit's cold wallet.
The hackers cleverly swapped a chunk of the stolen ETH into BTC using the decentralized exchange THORChain, allowing them to cash out their ill-gotten gains.
A Growing Threat
Before this record-breaking hack on Bybit, the Lazarus Group had already made headlines for its numerous cyber attacks against cryptocurrency companies worldwide. The group is estimated to have stolen $308 million from Japanese firm DMM Bitcoin last year and $625 million from the Ronin Network in 2022.
The group also holds roughly $30 million worth of other cryptos, including ETH, BNB, and USDT, further highlighting its significant threat to global cryptocurrency markets.
A Changing Landscape
Even though North Korea's Bitcoin holdings have dramatically increased, the United States remains the world's biggest Bitcoin holder, with a 198,109 BTC ($17 billion) stockpile. The U.K. comes in second place, holding 61,245 BTC worth $4,055,461,003.
As the global landscape continues to shift and evolve, one thing is clear: North Korea's emergence as a major player in the world of Bitcoin is here to stay. Will this newfound wealth be used for good or ill remains to be seen, but one thing is certain – the future of cryptocurrency looks more uncertain than ever.