Lazarus Group Becomes a Bitcoin Giant, Overtaking Bhutan and El Salvador
North Korea has emerged as one of the largest state-backed Bitcoin holders through the Lazarus Group, surpassing Bhutan and El Salvador in BTC ownership.
This development sheds light on the growing role of cryptocurrencies in global geopolitics, particularly as tools for state-sponsored cyber activities. The surge in North Korea’s cryptocurrency holdings follows a massive $1.4 billion hack on the crypto exchange Bybit, attributed to the notorious Lazarus Group.
North Korea’s Lazarus Group Bitcoin Holdings Exceed $1 Billion
According to recent data from Arkham Intelligence, North Korea’s Lazarus Group currently holds approximately 13,518 Bitcoin, valued at around $1.13 billion. This places North Korea ahead of Bhutan, which holds 10,635 BTC, and El Salvador, which owns 6,118 BTC.
Bhutan has amassed its Bitcoin reserves through an extensive domestic mining initiative, while El Salvador has steadily increased its holdings since adopting Bitcoin as legal tender in 2021.
The $1.4 Billion Bybit Hack
The sharp increase in North Korea’s Bitcoin reserves is directly linked to the February 2025 hack of Bybit, one of the largest cryptocurrency heists in history. Following the attack, Lazarus Group swiftly converted a significant portion of the stolen Ether (ETH) into Bitcoin using decentralized finance (DeFi) protocols such as THORChain.
Also read: Lazarus Group Moves 400 ETH to Tornado Cash Amid New Malware Threats
Lazarus Group has a long history of high-profile cyberattacks targeting cryptocurrency firms worldwide. Prior to the Bybit hack, the group was responsible for a $615 million theft from the Ronin Network in 2022 and a $308 million exploit of the Japanese exchange DMM Bitcoin in 2023.
While Bitcoin constitutes the majority of Lazarus Group’s stolen assets, the group has also accumulated a diverse portfolio of other cryptocurrencies. In addition to Bitcoin, Lazarus holds approximately $30 million in assets such as Ether (ETH), BNB, DAI, and BUSD, reflecting sophisticated laundering strategies designed to obscure the origin of stolen funds.
Also read: EU Investigates OKX Over Alleged Role in Bybit Hack Money Laundering
Despite North Korea’s expanding cryptocurrency reserves, the United States remains the world’s largest known Bitcoin holder. The US government currently controls 198,109 BTC, primarily seized from criminal and civil cases, as part of its strategic cryptocurrency reserve. According to Arkham data, the United Kingdom follows with 61,245 BTC in its holdings.
North Korea’s Cybercrimes Fund Weapons Programs
Lazarus Group’s illicit cyber activities serve a broader geopolitical purpose. US officials have repeatedly stated that North Korea funds nearly half of its weapons of mass destruction and ballistic missile programs through cyberattacks and cryptocurrency theft. These ongoing attacks present a significant security challenge, as they facilitate the theft and laundering of digital assets from wallets and exchanges worldwide.
Despite increasing international sanctions and restrictions aimed at curbing North Korea’s cybercrime operations, Lazarus Group and other state-sponsored hackers continue to operate with considerable impunity. The United States and its allies have intensified efforts to track and sanction individuals and entities involved in laundering stolen crypto assets. However, North Korea’s persistent cyber activities show the complexities regulators face in combating state-backed digital theft.
Also read: Crypto Exchange eXch Denies Bybit Hack Allegations Amid Growing Scrutiny
As North Korea’s Bitcoin holdings grow, so does the debate surrounding the intersection of cryptocurrencies and state-sponsored hacking. For North Korea, Bitcoin is more than just a digital asset; it serves as a vital financial tool for circumventing economic sanctions and funding national objectives. The evolving landscape of state-sponsored cybercrime is set to have profound implications for global financial security in the years to come.
