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Sohrab Khawas
Sohrab Khawas
Author
Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Mar 17, 2025 05:36 UTC
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How North Korea’s $1.14B Bitcoin Stash Could Threaten the Crypto Market
North Korea has amassed a significant Bitcoin reserve through cybercrime, posing a potential market risk due to possible large-scale sales.
The U.S. has established a large, legitimate Bitcoin reserve, contrasting with North Korea's illicit accumulation.
North Korea's use of Bitcoin raises concerns about market stability.
North Korea has quietly built one of the largest government-held Bitcoin reserves, surpassing even crypto-friendly nations like El Salvador and Bhutan. This has raised concerns in the crypto community, as a sudden sell-off from North Korea could shake the market, causing a liquidity crisis and a major price drop.
What happens if they decide to sell off their holdings? Could this trigger a massive market crash? And more importantly, is this part of a bigger geopolitical game?
Here’s a closer look at how North Korea built its Bitcoin empire – and why the world should be paying attention.
Are Heists Fueling North Korea’s Bitcoin Growth?
North Korea’s rise as a major Bitcoin holder follows a large-scale cyber heist by the Lazarus Group, a state-backed hacking syndicate. On February 21, 2025, the group stole over $1.4 billion in cryptocurrency from Bybit, a well-known exchange. Much of the stolen funds, originally in Ethereum, were later converted into Bitcoin, increasing North Korea’s total holdings to 13,562 BTC—now valued at more than $1.14 billion.
The US Takes a Different Approach
While North Korea has acquired Bitcoin through cyberattacks, the United States has opted for a structured approach. On March 6, 2025, President Donald Trump signed an executive order creating the Strategic Bitcoin Reserve (SBR). With 198,109 BTC, worth around $16.71 billion, the US now holds the world’s largest government-owned Bitcoin supply.
How Other Countries Compare in Bitcoin Holdings
According to Arkham data, several governments now hold significant amounts of Bitcoin:
- The United Kingdom has 61,245 BTC ($5.17 billion), mostly seized from criminal activity.
- Bhutan holds 10,635 BTC ($897.6 million) through its state investment arm, Druk Holdings.
- El Salvador, the first country to adopt Bitcoin as legal tender, has 6,117 BTC ($516.11 million).
Is Kim Jong Un Making a Strategic Bitcoin Move?
The timing of North Korea’s Bitcoin buildup, just as the US launched its Strategic Bitcoin Reserve, has raised speculation. Some analysts believe Kim Jong Un is using stolen Bitcoin to create a shadow reserve, helping North Korea bypass financial restrictions and fund operations without relying on traditional banking systems.
Bitcoin’s decentralized nature makes it a valuable asset for North Korea, which has been cut off from the global financial system due to international sanctions. Unlike traditional reserves such as gold or foreign currency, Bitcoin allows the country to move wealth and conduct transactions without oversight from global financial authorities.
Crypto Community Is Not Taking It Well
While the US sees its Bitcoin reserve as a financial strategy, North Korea’s growing stash appears to be part of a broader geopolitical game. This marks a shift where digital assets are becoming tools of economic and political influence.
The crypto community is increasingly worried about North Korea’s Bitcoin strategy.
Some believe it is a direct challenge to US dominance, while others warn that if Washington does not act, more countries may follow similar tactics.
Bitcoin is no longer just a currency; it’s a weapon, a shield, and a statement of power.
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