North Korea has emerged as the third-largest holder of Bitcoin globally, raising concerns among governments and cybersecurity experts worldwide. The country, which has been under heavy international sanctions, has allegedly accumulated a massive cryptocurrency reserve through cyberattacks and illicit activities. According to recent reports, North Korea now holds over 13,500 Bitcoin, valued at approximately $1.14 billion, making it a significant player in the global cryptocurrency market.
This development has sparked debates about the implications of a heavily sanctioned country possessing such vast digital wealth. Many believe that North Korea is using Bitcoin to evade sanctions and fund its military programs, including nuclear weapons development.
How Did North Korea Accumulate So Much Bitcoin?
Unlike countries that legally acquire Bitcoin through investments or mining, North Korea’s Bitcoin accumulation is primarily linked to cybercrime. The Lazarus Group, a state-sponsored hacking organization, has been behind some of the biggest cryptocurrency heists in recent years.
The Bybit Heist – A $1.5 Billion Cyber Attack
In February 2025, the Lazarus Group carried out one of the largest cryptocurrency heists in history by hacking Dubai-based cryptocurrency exchange Bybit. The hackers stole around $1.5 billion in various digital assets, mainly Ethereum. However, most of the stolen funds were later converted into Bitcoin, increasing North Korea’s overall Bitcoin holdings.
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Cybersecurity experts have pointed out that North Korea has been using advanced tactics such as phishing attacks, malware, and exploit kits to infiltrate major financial and crypto institutions. Over the past few years, cyberattacks attributed to North Korean hackers have resulted in the theft of billions of dollars in digital assets.
North Korea’s Bitcoin Holdings Compared to Other Countries
According to Arkham Intelligence, North Korea now holds approximately 13,562 BTC, placing it behind only the United States and the United Kingdom in terms of Bitcoin reserves. Here’s how North Korea compares to other major Bitcoin-holding nations:
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- United States – 198,109 BTC
- United Kingdom – 61,245 BTC
- North Korea – 13,562 BTC
- Bhutan – 10,635 BTC
- El Salvador – 6,117 BTC
Unlike Bhutan and El Salvador, which have legally invested in Bitcoin as part of their national financial strategies, North Korea’s holdings are largely acquired through illicit means.
Why Is North Korea Hoarding Bitcoin?
There are several strategic reasons behind North Korea’s increasing Bitcoin reserves:
1. Evading International Sanctions
North Korea has been under strict international sanctions for decades, limiting its ability to trade or access the global financial system. Bitcoin, being decentralized and anonymous, allows the country to bypass these restrictions and conduct transactions without oversight from international regulatory bodies.
2. Funding Weapons Development
Multiple intelligence reports suggest that North Korea is using funds from cryptocurrency thefts to finance its weapons programs, including ballistic missile and nuclear weapon development. A United Nations report estimates that up to 40% of North Korea’s missile program is financed through cybercrime.
3. Strengthening Economic Resilience
By holding a significant amount of Bitcoin, North Korea ensures financial stability despite international pressures. The country can liquidate its Bitcoin reserves whenever needed, providing a financial cushion against economic instability.
Also Read: Trump’s Strategic Bitcoin Reserve: A Game-Changer or a Risky Move?
Global Security Concerns Over North Korea’s Bitcoin Holdings
The rapid increase in North Korea’s Bitcoin reserves has raised serious security concerns:
1. Increased Cybersecurity Threats
North Korea’s reliance on cyberattacks to acquire Bitcoin highlights vulnerabilities in global cryptocurrency exchanges and financial systems. The Lazarus Group’s sophisticated hacking techniques pose a major threat to the security of digital assets worldwide.
2. Proliferation of Cyber Warfare
North Korea’s success in hacking cryptocurrency platforms may encourage other rogue states or criminal organizations to adopt similar tactics. This could lead to an increase in cyberattacks targeting financial institutions, businesses, and even governments.
3. Difficulty in Regulating Digital Assets
Cryptocurrencies operate on decentralized networks, making it difficult for international regulators to track and prevent illicit transactions. As long as North Korea can move and launder Bitcoin without detection, sanctions enforcement becomes significantly more challenging.
What Can Be Done to Stop North Korea’s Cyber Heists?
Given the increasing sophistication of North Korean hackers, experts recommend the following measures to curb their cyber operations:
- Enhanced Cybersecurity Measures – Cryptocurrency exchanges must invest in stronger security infrastructure, including multi-layer authentication, AI-driven threat detection, and secure storage for digital assets.
- International Collaboration – Governments and cybersecurity agencies must work together to track and freeze stolen cryptocurrency before it can be laundered or converted into traditional currency.
- Strict Regulation of Crypto Transactions – Regulatory frameworks should be established to monitor large crypto transactions and prevent money laundering activities linked to North Korea.
- Sanctions on Crypto Mixing Services – North Korea reportedly uses crypto mixing services to obscure the origin of stolen funds. Governments should impose sanctions on such services to cut off the country’s access to clean cryptocurrency.
Conclusion
North Korea’s rise as the third-largest Bitcoin holder is a stark reminder of how digital assets can be exploited by rogue nations to evade sanctions and fund illicit activities. With an estimated $1.14 billion in Bitcoin, North Korea now holds more cryptocurrency than some legally recognized Bitcoin-friendly nations.
The international community must take urgent action to strengthen cybersecurity, regulate cryptocurrency transactions, and prevent further cyber thefts. As long as North Korea continues to use cryptocurrency as a financial weapon, global security risks will persist.
This situation underscores the need for stronger regulations in the crypto industry, improved cybersecurity measures, and international cooperation to curb illicit cyber activities. The challenge ahead is to ensure that digital currencies are used for legitimate purposes and not as tools for geopolitical manipulation.
