North Korea Overtakes El Salvador and Bhutan in Bitcoin Holdings After $14 Billion Hack at Bybit
Reports indicate that North Korea has expanded its Bitcoin stockpiles. According to an analysis by the data service Bitfinex, North Korea is now in third place globally in terms of Bitcoin holdings. The crucial context to this development is a massive hack at the crypto exchange Bybit, from which around $14 billion in Bitcoin has allegedly originated for North Korea.
North Korea on the Rise in the Crypto World
Analysis from Bitfinex indicates that North Korea controls about $95 million in Bitcoins. The country has thus surpassed El Salvador and Bhutan, each previously considered notable due to significant Bitcoin reserves. El Salvador has about $52 million, while Bhutan holds $75 million worth of Bitcoin.
The driving force behind North Korea’s dominion in the world of Bitcoin is purportedly cybercrime. With numerous cyberattacks on crypto exchanges traced back to Pyongyang, North Korea is said to fund its military and technology programs, bypassing sanctions imposed by the international community.
Incident at Bybit: The Source of North Korea’s Newest Bitcoin Stash?
How North Korea took possession of the Bitcoins originating from the crypto exchange Bybit remains unclear. Bybit itself announced on October 2023 that it had become the victim of a hack that caused substantial losses. Reactions to Bybit’s announcement have been skeptical, with accusations of a lack of transparency and inadequate security measures. Investigations into the Bybit incident are ongoing.
The forecasts around the Bybit hack suggest that further escalation is possible. Whether North Korea will manage to liquidate these funds effectively, circumventing any existing security handles, remains to be seen. Meanwhile, North Korea’s Bitcoin activities exemplify how cryptocurrency can be a focal point in global geopolitics.
Leave a Reply