North Korea’s Rise as a Major Bitcoin Holder

North Korea has entered the ranks of the world’s top government Bitcoin holders following a significant cryptocurrency theft linked to the Lazarus hacking group.

After successfully targeting the cryptocurrency exchange Bybit, the North Korean-affiliated hackers converted a large portion of stolen Ethereum into Bitcoin. This conversion has elevated North Korea past both El Salvador (6,117 BTC) and Bhutan (10,635 BTC) in terms of national Bitcoin holdings, now ranking as the third-largest government entity holding Bitcoin globally.

Bitcoin Holdings Across Government Entities

The distribution of Bitcoin across government entities has shifted with North Korea’s ascent. The United States retains its dominant position with 198,109 BTC ($16.71 billion), while the overall rankings are evolving as countries adopt various approaches to cryptocurrency.

The United Kingdom boasts the second-largest government Bitcoin holdings, primarily through criminal seizures. Authorities have confiscated 61,245 BTC (around $5.17 billion) from various enforcement operations.

In contrast, Bhutan’s Bitcoin reserves, managed by state-owned Druk Holdings, stand at 10,635 BTC ($897.60 million), built through hydroelectric-powered mining.

El Salvador, despite being the first country to adopt Bitcoin as legal tender, now holds fifth place with 6,117 BTC. President Nayib Bukele’s strategy of dollar-cost averaging for national Bitcoin purchases has gradually strengthened the country’s position.

This situation raises concerns as a sanctioned nation like North Korea has surpassed others in Bitcoin holdings by using illicit means, unlike those with legitimate acquisition strategies.

North Korea’s Crypto Strategy Reveals National Security Concerns

The Lazarus Group, believed to operate under North Korea’s intelligence services, has transformed cryptocurrency theft into a vital funding mechanism for the sanction-restrained state. The February Bybit attack aligns with previous operations targeting cryptocurrency platforms, suggesting North Korea’s awareness of global Bitcoin acquisition trends.

Geopolitically, North Korea’s Bitcoin holdings may provide the regime with increased resilience against international pressure, extending their financial reach.

Bybit Hack Recovery Efforts Underway

Bybit has initiated a substantial $140 million bounty program aimed at recovering funds stolen in the February 21, 2025 hack, dubbed “LazarusBounty.” The program rewards individuals who assist in freezing and recovering the stolen assets.

Real-time tracking indicates that nearly 89% of the $1.4 billion theft is monitored. According to the LazarusBounty dashboard, only $2,233,947 in bounties have been awarded so far to 13 bounty hunters.

The structure offers a 10% reward for recovered funds, with 5% allocated to entities that freeze the funds, and another 5% to the first reporters who help trace the funds.

Currently, 88.97% ($1,124,623,715) of the stolen assets are being tracked, 7.50% ($94,837,426) await responses from exchanges or authorities, and only 3.52% ($44,534,307) have been successfully frozen.

This hack is one of the largest cryptocurrency thefts in history, effectively boosting North Korea’s financial reserves amidst strict international sanctions.