North Korea has emerged as the third-largest holder of Bitcoin globally, following the United States and the United Kingdom. This development is primarily attributed to the cyber-hacking group Lazarus, which has been implicated in significant cryptocurrency thefts, including a recent heist involving the exchange Bybit.

 

Key Highlights

 

  • North Korea's Lazarus group possesses approximately 13,580 Bitcoin, valued at £886 million.
  • The group recently stole over £1.2 billion in Ethereum from the cryptocurrency exchange Bybit.
  • These cyber activities are believed to fund North Korea's nuclear and ballistic missile programs.
  • In 2024, North Korea's cyber thefts accounted for 35% of the £1.7 billion stolen worldwide.
  • The United Nations reports that up to 40% of North Korea's nuclear program is financed through cyber means.

 

 

"Lazarus, also known as TraderTraitor, plays a crucial role in funding North Korea’s nuclear and ballistic missile programs through illicit cyber activities."

 

 

North Korea's strategic accumulation of Bitcoin through cyber thefts underscores the challenges in securing digital assets on a global scale. The activities of the Lazarus group highlight vulnerabilities within cryptocurrency exchanges and the broader digital finance infrastructure. This situation raises concerns about the use of stolen cryptocurrencies to fund activities that threaten international security.

 

The international community faces significant challenges in curbing such cyber threats. Enhanced cybersecurity measures, international cooperation, and stringent regulatory frameworks are essential to mitigate the risks posed by state-sponsored cybercriminal activities. Additionally, the traceability of blockchain transactions offers a tool for tracking illicit funds, although converting these assets into traditional currencies remains a complex issue.

 

Conclusion

North Korea's position as one of the largest Bitcoin holders, achieved through cyber theft, presents a complex challenge intertwining cybersecurity, international finance, and global security. Addressing this issue requires a coordinated international effort to bolster cybersecurity, enforce regulations, and develop strategies to prevent the misuse of digital assets.