North Korea's Crypto Heist: Funding Missiles with Bitcoin

North Korea became the world's third-largest state holder of Bitcoin with 13,562 BTC valued over $1 billion, surpassing Bhutan and El Salvador. This is all due to a $1.4 billion crypto heist conducted by the Lazarus Group, a North Korean intelligence agency-affiliated cybercrime group, which hacked the Bybit exchange in February 2025. The Ethereum stolen money was primarily converted to Bitcoin.

The Lazarus Group employed sophisticated tactics to hack Bybit, ultimately rerouting approximately 401,000 Ethereum coins worth approximately $1.46 billion to a wallet owned by them. They entered it through specific phishing attacks, which allowed them to steal confidential information and access Bybit's user interface and cold wallet signers. The stolen coins were routed through several wallets and swapped for Bitcoin and Dai on decentralized exchanges to cover their trail.

North Korea's Bitcoin hoarding creates fears of such funds being applied to fund its nuclear and military endeavors in contravention of international sanctions. Although efforts have been made to freeze the illegally obtained funds, most have already been laundered using complicated ways. The case highlights the ongoing problem of governing cryptocurrency and the ability of criminal applications to undo global security initiatives