Changpeng Zhao has fueled speculation about North Korea’s potential Bitcoin reserve strategy as the Lazarus Group significantly increases its BTC holdings. This development has drawn attention to the country’s growing role in the crypto space.
Key Highlights:
- CZ hints at North Korea’s Bitcoin reserve plans amid its rising BTC holdings.
- North Korea surpasses Bhutan and El Salvador, becoming the fourth-largest holder of Bitcoin.
- The Lazarus Group has converted stolen funds from the Bybit hack into BTC.
North Korea’s Bitcoin Holdings Surge
In a surprising turn of events, North Korea has overtaken Bhutan and El Salvador in Bitcoin holdings, securing the fourth-largest position globally. Binance founder Changpeng Zhao (CZ) shared a cryptic post on X, jokingly commenting, “Different ways to build a strategic crypto reserve,” sparking speculation about the country’s long-term Bitcoin plans.
This surge follows the Lazarus Group’s involvement in the Bybit hack, where $1.4 billion worth of Ethereum was stolen. However, recent reports reveal that the hackers have converted a significant portion of these funds into Bitcoin, further increasing North Korea’s BTC reserves.
CZ’s Speculation on North Korea’s BTC Reserve Plans
CZ’s post on X included a laughing emoji, seemingly expressing surprise at North Korea’s growing Bitcoin reserves. His comment suggests an ironic take on the situation, implying that a nation often viewed as isolated and heavily sanctioned is now establishing itself as a major Bitcoin holder.
While CZ’s remark may have been lighthearted, it has triggered serious discussions in the crypto community about whether North Korea is strategically accumulating Bitcoin as part of a long-term financial strategy.
North Korea’s Bitcoin Holdings: Where Does It Stand?
According to Arkham Intelligence, the Lazarus Group currently holds 13,518 BTC, valued at $1.13 billion at Bitcoin’s current price of $83,263.
For comparison, here are the largest Bitcoin-holding nations:
- United States – 198,109 BTC (~$16.47 billion)
- China – 195,000 BTC (~$16.18 billion)
- United Kingdom – 61,245 BTC (~$5.1 billion)
- North Korea – 13,518 BTC (~$1.13 billion)
Previously, El Salvador and Bhutan held the fourth and fifth positions with 10,634 BTC ($886 million) and 6,118 BTC ($509.5 million), respectively. However, following the Bybit hack, North Korea jumped ahead, solidifying its position in the global Bitcoin rankings.
Is North Korea Actively Embracing Bitcoin?
The timing of North Korea’s Bitcoin accumulation has raised questions, particularly as the U.S. expands its Bitcoin reserves. Crypto analysts are questioning why the Lazarus Group chose to convert stolen funds into BTC instead of other cryptocurrencies.
Additionally, CZ’s commentary has further fueled speculation that North Korea may be strategically accumulating Bitcoin as part of a broader financial plan. However, no official confirmation has been made regarding the country’s reserve strategy.
Meanwhile, South Korea’s central bank (BoK) has outright rejected the idea of adopting Bitcoin as a reserve asset, despite lawmakers proposing the idea. The BoK emphasized concerns over market instability and high transaction costs associated with converting BTC into cash during volatile periods.
Final Thoughts
North Korea’s rapid rise in Bitcoin holdings, coupled with CZ’s intriguing remarks, has sparked widespread speculation about its potential crypto strategy. Whether this accumulation is a coincidence or a deliberate move toward Bitcoin reserves, it has certainly put North Korea in the spotlight of the crypto world.
