North Korea has emerged as one of the largest state holders of Bitcoin, surpassing sovereign nations like El Salvador and Bhutan, as well as corporate giants like Tesla. This development comes in the wake of a high-profile crypto heist orchestrated by the Lazarus Group, a cybercrime syndicate linked to North Korean intelligence services.
North Korea’s Rise in the Bitcoin Rankings
The Lazarus Group infiltrated Bybit, a major cryptocurrency exchange, on February 21, executing the largest crypto theft in history by stealing $1.4 billion, primarily in Ethereum. Following the attack, a significant portion of the stolen funds was converted into Bitcoin, increasing North Korea’s total Bitcoin holdings to approximately 13,562 BTC, valued at $1.14 billion.
This positions North Korea as the third-largest Bitcoin holder among governments, surpassing Bhutan’s 10,635 BTC and El Salvador’s 6,117 BTC. Even more notably, North Korea’s Bitcoin stash exceeds Tesla’s 11,509 BTC, making the cybercrime-linked regime a larger BTC holder than one of the most influential tech companies in the world. The only entities holding more Bitcoin are the United States, with 198,109 BTC ($16.71 billion), and the United Kingdom, with 61,245 BTC ($5.17 billion).
Strategic Accumulation Raises Geopolitical Concerns
Unlike other large Bitcoin holders, North Korea’s accumulation stems from cybercrime rather than legal acquisitions. The Lazarus Group has a long history of targeting crypto exchanges and exploiting security vulnerabilities to fund the nation’s military and nuclear programs.
Analysts suggest the timing of the Bybit hack may be strategic. Shortly after the attack, the U.S. government announced the creation of the Strategic Bitcoin Reserve (SBR), leading to speculation that North Korea is closely monitoring global trends in sovereign Bitcoin accumulation.
As a heavily sanctioned state with restricted access to the global financial system, North Korea has increasingly relied on cryptocurrencies to circumvent economic restrictions. Bitcoin’s decentralized nature makes it difficult to seize or freeze these assets, providing the regime with an alternative financial cushion amid international sanctions.
Laundering and the Challenges of Tracking Stolen Crypto
Despite coordinated international efforts to freeze the stolen funds, blockchain tracking firms report that at least $300 million from the Bybit hack has already been laundered. North Korean hackers employ advanced techniques such as chain-hopping (swapping assets across multiple blockchains), privacy mixers, and sophisticated obfuscation tools to evade detection.
Regulatory bodies across the U.S., Europe, and Asia have intensified crackdowns on illicit cryptocurrency flows. However, given the scale and sophistication of North Korea’s laundering operations, a full recovery of stolen assets remains unlikely.
Implications for Global Bitcoin Adoption
The revelation that North Korea holds more Bitcoin than Tesla and several nation-states adds a new layer to the ongoing discussion about Bitcoin’s role in global finance. Meanwhile, former U.S. President Donald Trump recently reaffirmed his commitment to making the U.S. the "undisputed Bitcoin superpower and the crypto capital of the world," fueling debates on accelerated Bitcoin adoption among corporations and sovereign nations.
With the U.S. government holding a significant 198,109 BTC from enforcement seizures, the contrast between state actors using Bitcoin for economic strategy versus illicit financial operations continues to highlight the cryptocurrency’s dual-edged role in global affairs. Whether North Korea’s crypto-funded operations will prompt new regulatory responses or geopolitical shifts remains to be seen.
