| Key Points: – North Korea surpasses Bhutan and El Salvador in Bitcoin reserves after the $1.4 billion Bybit hack. – The Lazarus Group converted stolen ETH into BTC using DeFi platforms to evade tracking. – The U.S. remains the largest Bitcoin-holding nation, while North Korea continues cyber-financed accumulation. |
North Korea surpasses Bhutan and El Salvador in Bitcoin reserves, largely fueled by cyberattacks, raising concerns over its geopolitical crypto strategy.
This development raises concerns about the role of cybercrime in state-backed financial strategies. With North Korea amassing over $1.12 billion in BTC, experts warn of increased crypto-funded illicit activities, from weapons programs to sanctions evasion.
North Korea Surpasses Bhutan and El Salvador in Bitcoin Reserves
Following the Bybit hack that netted $1.4 billion, North Korea now holds more Bitcoin than both Bhutan and El Salvador, positioning itself among the largest nation-state holders of BTC. The Lazarus Group, a notorious North Korean state-backed hacker collective, has long used cyberattacks as a means to amass crypto wealth.
According to on-chain data, Lazarus Group currently controls 13,518 BTC, valued at approximately $1.12 billion. This surpasses Druk Holdings Bhutan’s 10,635 BTC and El Salvador’s 6,118 BTC. Unlike these nations, which acquire Bitcoin through mining and legal purchases, North Korea’s holdings primarily stem from large-scale crypto heists.
The Bybit Hack: Lazarus Group’s Latest Crypto Heist
The February 2025 Bybit hack, attributed to Lazarus, set a record as the largest crypto exploit to date. The group reportedly swapped a significant portion of the stolen ETH into BTC using THORChain and other DeFi protocols to obscure transaction trails. This tactic has been a recurring strategy in previous hacks, including the $615 million Ronin Network breach and the $308 million DMM Bitcoin attack.
Beyond Bitcoin, Lazarus Group still holds over $30 million in other digital assets, including ETH, BNB, and stablecoins. These illicit crypto reserves continue to fuel North Korea’s economy despite global sanctions and efforts to curb its cyber-financed activities.
The Global Bitcoin Race: Strategic Reserves vs. Cyber Accumulation
While North Korea surpasses Bhutan and El Salvador in BTC reserves, it still lags behind global leaders. The United States remains the largest Bitcoin-holding nation, with 207,189 BTC (~$17.33 billion), followed closely by China with 194,000 BTC. The U.K., with 61,000 BTC, has also amassed substantial holdings, primarily through asset seizures.
Notably, North Korea’s rapid BTC accumulation before the U.S. launched its Strategic Bitcoin Reserve (SBR). This raises questions about Pyongyang’s long-term crypto strategy—whether it sees Bitcoin as a geopolitical asset or simply a tool for evading sanctions. With the U.S. formalizing its BTC reserves, North Korea’s crypto-funded operations could become an increasing focal point in global financial and security discussions.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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