It has been revealed that the North Korean hacker group Lazarus has become the world’s third-largest Bitcoin holder through the theft of cryptocurrency. This hacking group is known for conducting state-sponsored cyber attacks and poses a major threat to the international community.
Lazarus’ background and past cyber attacks
Lazarus is a hacker group that is said to be connected to the Reconnaissance General Bureau, North Korea’s military intelligence agency. They have targeted banks, financial institutions, cryptocurrency exchanges, and companies around the world, stealing huge amounts of digital assets. In the past, they are said to have been involved in the cyber attack on the Central Bank of Bangladesh in 2016 and the WannaCry ransomware attack in 2017. These attacks have damaged not only financial institutions but also hospitals and corporate networks, causing serious social impacts.
On the other hand, it seems that recommended cryptocurrency presales are not targeted. This is because the market size of cryptocurrencies during presales is relatively small. However, these cryptocurrencies may rise hundreds or thousands of times in value after being listed on exchanges.
North Korea’s Bitcoin Holdings
According to reports, North Korea currently holds approximately 13,580 Bitcoins (worth approximately $886 million), making it the third largest holder in the world after the United States and the United Kingdom. This figure is the result of a large-scale cryptocurrency theft carried out by Lazarus in 2024, with exchanges in Japan and Dubai being particularly affected. It is believed that the reason North Korea holds such a large amount of Bitcoin is due to its use of cryptocurrencies as a means of national financing. For North Korea, which cannot use traditional financial systems due to economic sanctions, cryptocurrencies play a vital role as a means of circumventing international financial networks.
Major hacking incidents in 2024
Lazarus carried out several large-scale hacks in 2024, stealing large amounts of cryptocurrencies. The Bybit exchange in Dubai suffered unprecedented damage, with approximately $1.5 billion worth of Ethereum stolen. According to the FBI report, the attack made use of Lazarus’ advanced cyber technology, dispersing assets through multiple anonymous wallets to make them difficult to track. Japan’s DMM Bitcoin exchange was also targeted, resulting in the theft of approximately 4,503 Bitcoins (equivalent to approximately $300 million). This incident was one of the largest cryptocurrency hacking incidents ever to occur in Japan.
North Korea’s nuclear development and cryptocurrency financing
According to a UN report, up to 40% of North Korea’s nuclear development program is funded by cyberattacks. Lazarus is likely converting the stolen cryptocurrency into cash using highly anonymous methods and using it for weapons development and sanctions evasion. In particular, a method has been pointed out in which Bitcoin is exchanged for privacy coins such as Monero to evade international sanctions. This method makes it extremely difficult to prevent money laundering and is a major challenge for financial authorities in each country.
International response and strengthening regulations
The international community is being called upon to take a tough stance against Lazarus’ cryptocurrency theft. The U.S. Treasury Department added wallet addresses associated with Lazarus to its sanctions list and prohibited U.S. companies from transacting with these addresses. The FBI also released details of hacking incidents involving Lazarus and is tracking the flow of funds through international cooperation. Meanwhile, the Japanese Financial Services Agency and exchanges are also strengthening their security and taking measures to prevent future hacking damage.
Impact on the cryptocurrency market
The hacking by North Korea has had a major impact on the cryptocurrency market. Financial supervisory agencies in various countries are strengthening their monitoring of cryptocurrency transactions and strengthening their crackdown on illegal transactions. Exchanges are also introducing more advanced security measures and developing technologies to reduce the risk of hacking. However, it cannot be denied that the succession of large-scale hacking incidents will shake investors’ trust in the cryptocurrency market and lead to greater price fluctuations.
Future prospects and challenges
As one of the most successful cybercrime groups in the world, the North Korean hacker group Lazarus is having a serious impact on the cryptocurrency market. Their activities are not limited to financial crimes but are directly linked to national military strategies, posing a major threat to the international community. In the future, each country will need to strengthen regulations and develop security measures, and the cryptocurrency industry itself will need to develop a safer operating model. As North Korea’s hacking activities become more sophisticated, a major issue is how countries can cooperate and prevent damage.
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