- North Korea now holds 13,562 BTC, worth $1.14 billion, surpassing Bhutan and El Salvador
- 50% of North Korea’s weapons program is being funded through crypto thefts
North Korea has quietly risen in the global rankings of government-held Bitcoin [BTC] reserves. In fact, Pyongyang’s regime is now holding upwards of $1.1 billion in cryptos.
This surge comes on the heels of a significant cyberattack on the Bybit cryptocurrency exchange, one orchestrated by the Lazarus Group – A state-backed hacking collective.
Source: Arkham
Is North Korea’s crypto vault bigger than El Salvador’s?
Thanks to this surge, North Korea has now surpassed Bhutan and El Salvador in Bitcoin holdings. The United States remains the largest Bitcoin holder, with 198,109 BTC (~$16.56 billion).
The United Kingdom follows suit with 61,245 BTC (~$5.1 billion). North Korea now ranks as the third-largest government entity holding Bitcoin.
The group converted the stolen Ethereum into Bitcoin, amassing 13,562 BTC valued at approximately $1.14 billion, according to Arkham Intelligence.
The Bybit exploit on 21 February resulted in the theft of $1.4 billion worth of crypto assets, primarily Ethereum [ETH].
The art of laundering stolen funds
The Lazarus Group, a notorious cybercriminal organization, leveraged its advanced laundering techniques to convert stolen ETH into BTC. The group executed these transactions using decentralized protocols, including THORChain, to obscure the movement of illicit funds.
Even before the Bybit hack though, North Korea had a history of high-profile cryptocurrency thefts.
The group was previously linked to the $615 million Ronin Bridge hack (2022) and the $308 million attack on a Japanese crypto firm.
In total, North Korean-backed cybercrimes have resulted in over $3 billion being stolen in the last five years, making it the largest nation-state actor in the crypto space.
“Follow the money”— but where does it lead?
On 13 March, blockchain security firm CertiK detected a deposit of 400 ETH to Tornado Cash. The deposit, worth $750,000, was linked to Lazarus Group’s activities. This method helps them cover their tracks before cashing out stolen funds. Here, it’s worth pointing out that North Korea’s crypto accumulation has been entirely through cybercrime.
On the contrary, Bhutan’s Bitcoin reserves of 10,635 BTC were acquired through state investments in mining and strategic purchases.
Source: Arkham
Similarly, El Salvador adopted Bitcoin as legal tender in 2021, accumulating its holdings through direct market buys.
Can the United States stop this?
The growing Bitcoin reserves of North Korea have serious global implications.
A 2023 White House report stated that North Korea funds around 50% of its weapons of mass destruction (WMD) and missile programs using cybercrime and cryptocurrency thefts.
U.S authorities are actively working to freeze and seize North Korean assets. However, due to the decentralized nature of blockchain transactions, stopping these operations has been a challenge.
Sanctions vs. cybercrime
Meanwhile, the United States is considering establishing a Strategic Bitcoin Reserve using assets seized from criminal investigations and civil forfeitures. If implemented, this would further solidify Bitcoin’s role in global financial strategies.
North Korea’s growing Bitcoin holdings highlight how cybercrime has become an economic weapon. Despite international sanctions, the Lazarus Group continues to evolve its techniques, making it harder for authorities to intercept stolen funds.
