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North Korea Bitcoin Reserves Surge: What Does It Mean for Global Security?

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North Korea Bitcoin Reserves Surge: What Does It Mean For Global Security?

North Korea Bitcoin Hoard Grows to $1.1 Billion: Implications for Crypto

North Korea Bitcoin– North Korea has quietly emerged as one of the largest holders of Bitcoin (BTC) among government entities, with reserves now exceeding $1.1 billion. This surge follows a significant cyberattack on the Bybit cryptocurrency exchange, attributed to the Lazarus Group, a state-backed hacking collective.

Due to this surge, North Korea has now surpassed both Bhutan and El Salvador in Bitcoin reserves. The U.S. remains the largest holder with 198,109 BTC (approximately $16.56 billion), followed by the U.K. with 61,245 BTC (around $5.1 billion). North Korea is now ranked as the third-largest government entity in terms of Bitcoin holdings. According to Arkham Intelligence, the Lazarus Group converted stolen Ethereum (ETH) into Bitcoin, accumulating 13,562 BTC worth about $1.14 billion.

North Korea Bitcoin Reserves Surge: What Does It Mean For Global Security?

The Lazarus Group and the Art of Laundering Stolen Funds

The Lazarus Group has used advanced techniques to launder stolen funds, primarily Ethereum, into Bitcoin. They’ve used decentralized protocols like THORChain to obscure the movements of illicit funds. This is not the first time North Korea has been linked to high-profile cryptocurrency thefts. The group was also responsible for the $615 million Ronin Bridge hack in 2022 and a $308 million attack on a Japanese crypto firm.

North Korea’s Bitcoin holdings are entirely derived from cybercrime activities. The Lazarus Group continues to exploit decentralized technologies to cover their tracks. On March 13, CertiK, a blockchain security firm, discovered a deposit of 400 ETH (worth $750,000) tied to the Lazarus Group’s activities.

North Korea Bitcoin Reserves Surge: What Does It Mean For Global Security?

North Korea’s growing Bitcoin reserves pose a significant challenge to global financial security. A 2023 White House report revealed that North Korea funds about 50% of its weapons programs through cryptocurrency thefts. U.S. authorities are working to freeze and seize North Korean assets, but the decentralized nature of blockchain makes these efforts difficult.

The increasing use of Bitcoin by North Korea for cybercrime highlights the growing importance of cryptocurrency in global financial strategies and the difficulty in halting such operations due to the anonymity provided by blockchain.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.

North Korea Bitcoin Reserves Surge: What Does It Mean For Global Security?
Written by
sevval

Şevval has been actively writing since 2022 and is a third-year mathematics student at Ankara University. Her interest in writing is shaped particularly around innovative technologies such as Web3, artificial intelligence, and blockchain. She closely follows developments in these fields and aims to convey complex topics to readers in a clear and engaging manner. She enjoys combining her mathematical knowledge with technology to create content and strives to raise awareness about the digital world of the future.

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