• After laundering funds from the Bybit hack, North Korea now holds more Bitcoin than El Salvador and Bhutan.
  • The ability of state-sponsored groups to amass significant cryptocurrency holdings poses risks to financial systems and international security.

North Korea’s state-sponsored hacking group, the Lazarus Group, has accumulated a significant Bitcoin (BTC) reserve, surpassing the holdings of both Bhutan and El Salvador. According to Arkham data, as of March 17, the group holds approximately 13,518 BTC, valued at around $1.13 billion. Topping the list of Bitcoin holders is the United States, with 198,109 BTC worth $16.47 billion, followed by China with 195,000 BTC and the United Kingdom with 61,245 BTC valued at $5.1 billion).

The Lazarus Group has been implicated in numerous high-profile cyberattacks, with the recent hack of the cryptocurrency exchange Bybit standing out. In February, the group orchestrated the theft of over 400,000 Ethereum (ETH) from Bybit’s secure multi-signature cold wallet, amounting to approximately $1.5 billion. Subsequently, the stolen ETH was laundered and converted into Bitcoin, significantly boosting North Korea’s BTC reserves.

This is not an isolated incident. In March 2022, the Ronin Network , a blockchain platform supporting the popular play-to-earn game Axie Infinity, fell victim to a major security breach. Exploiting vulnerabilities, attackers drained approximately 173,600 ETH and 25.5 million USD Coin (USDC), totaling over $600 million at the time. 

In May 2024, Japan-based cryptocurrency exchange DMM Bitcoin suffered a sophisticated cyberattack, resulting in the theft of approximately $308 million worth of digital assets. These incidents underscore North Korea’s ongoing strategy of leveraging cyberattacks to amass cryptocurrency, a tactic believed to fund various state operations.

Comparison with Bhutan and El Salvador

Bhutan, through its investment arm Druk Holding & Investments (DHI), has been actively engaged in Bitcoin mining since 2019. The country has leveraged its abundant hydroelectric resources to power mining operations efficiently. As of today, Bhutan holds over 10,634 BTC, valued at approximately $886 million, making it the fourth-largest nation-state holder of Bitcoin.

El Salvador became the first country to adopt Bitcoin as legal tender in 2021. Currently, it holds around 6,118 BTC, ranking as the fifth-largest holder, with a total value exceeding $509 million and an unrealized profit of $119.77 million. Earlier, we reported that El Salvador is preparing to roll back its Bitcoin policy as it negotiates a $1.4 billion loan with the International Monetary Fund (IMF). One significant change includes ending the government’s taxpayer-funded daily Bitcoin purchases by July 2025.

While South Korea’s central bank has rejected the idea of adopting Bitcoin reserves, the United States, under President Donald Trump, has taken a different stance. Trump has long teased the idea of a national Bitcoin strategy, and he recently signed an executive order in early March to establish a National Bitcoin Strategic Reserve. Bitcoin is currently trading at $82,911, marking a 4.85% increase over the past week. Meanwhile, Ethereum has slipped below the $2,000 support level and is now trading at $1,903.

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