Discover the intriguing story of how North Korea became one of the world’s leading Bitcoin owners. This surprising turn of events took place after the country’s infamous Lazarus Group successfully hacked the Bybit cryptocurrency exchange, resulting in a shift of over $1.5 billion worth of cryptocurrency into North Korean hands.
# An Unexpected Addition to the Bitcoin Rich List
North Korea, a nation not traditionally associated with cryptocurrency wealth, suddenly finds itself among the biggest Bitcoin holders globally. Thanks to the nefarious activities of the Lazarus Group, a hacking cohort believed to be connected to North Korea, the country has amassed a significant Bitcoin fortune. Current estimates place their Bitcoin stash at around 13,518 coins, equivalent to a staggering $1.15 billion at prevailing rates.
Arkham data reveals that this accumulation happened in record time, with the majority of the coins added to the North Korean portfolio between February 22 and February 24. The Lazarus Group successfully extracted nearly 14,000 Bitcoin, worth approximately $1.5 billion, from the Bybit exchange in late February, marking it as the biggest cryptocurrency hack in history.
In terms of national Bitcoin holdings, North Korea now surpasses countries like El Salvador and Bhutan, which hold 6,118 BTC and 10,634 BTC respectively. The only countries currently holding more Bitcoin are the United States, with a holding of 198,109 BTC, and the UK, with a stash of 61,245 BTC.
# A New Form of Strategic Bitcoin Reserve?
The unique method in which North Korea acquired its Bitcoin trove has not gone unnoticed by the global cryptocurrency community. Binance co-founder Changpeng Zhao, humorously implied that North Korea was amassing a strategic Bitcoin reserve (SBR) through hacking exploits, different from how other nations like the US have accrued their Bitcoin reserves through purchases and seizures.
The idea of a national SBR has gained increased traction recently. For instance, the US President has signed an executive order aimed at building a “Digital Asset Stockpile” using seized Bitcoin, an initiative embraced by Republican lawmakers who have introduced legislation to codify this rule at the national and state level.
Not all nations are on board with the concept of a Bitcoin SBR though. Swiss National Bank’s Chief has rejected the idea, citing Bitcoin’s volatility as a concern, while the Bank of Korea also expressed caution due to the cryptocurrency’s price fluctuations.
Despite the varied viewpoints, the fact remains that Bitcoin has become a significant asset for nations worldwide, albeit in ways both legal and illicit. As North Korea has shown, even countries under sanctions can amass significant cryptocurrency wealth, raising new questions about Bitcoin’s role in global finance.
FAQs
How did North Korea become one of the world’s leading Bitcoin owners?
North Korea’s position as one of the world’s tops Bitcoin owners is attributed to a successful hack by the Lazarus Group, believed to be connected to North Korea, on the Bybit cryptocurrency exchange. This resulted in approximately 14,000 BTC being added to the nation’s stash.
What is a Strategic Bitcoin Reserve?
A Strategic Bitcoin Reserve (SBR) is a concept where a country accumulates Bitcoin as part of its national reserves. This can be done either by purchasing the cryptocurrency, seizing it as part of legal proceedings, or in rarer cases, through hacking exploits.
How are other nations responding to the concept of a Bitcoin SBR?
The response to the idea of a Bitcoin SBR varies. While the US has been proactive in creating an SBR by using seized Bitcoin, countries like Switzerland and South Korea have expressed concerns relating to Bitcoin’s volatility.
What impact does North Korea’s Bitcoin stash have on the global cryptocurrency market?
While North Korea’s Bitcoin accumulation has created headlines and served as a cautionary tale about hacking exploits, it does not directly impact the global cryptocurrency market. However, it does highlight the ever-evolving landscape of digital finance and brings up questions about Bitcoin’s role in global wealth.
