U.S. court freezes $30.5 million in Bybit hacking case, expands asset recovery operations

U.S. federal court freezes US$30.5 million in assets in Bybit hacking case, recovery operations continue to expand

A U.S. federal court has approved a preliminary injunction to freeze digital assets related to Bybit's massive hacking attack in February 2025. Previously, the cryptocurrency exchange filed a civil lawsuit against North Korea, the General Investigation Bureau and the Lazarus Group. This progress marks an important step for Bybit in its efforts to recover $1.5 billion in stolen ether and prevent further loss of assets through the global crypto ecosystem.

Legal action accelerates the recovery process

The lawsuit was filed in the U.S. District Court for the District of Colombia and also against unidentified individuals and entities accused of transferring and possessing stolen assets. Bybit requested judicial intervention to prevent the transfer or sale of cryptocurrency related to hacking during the litigation. The judge's injunction now covers multiple unnamed defendants and restricts any transfer, sale or other operation involving specific digital assets. The court initially found that Bybit showed a possibility of winning in its claim, but final ownership had not yet been determined. Since the attack in February 2025, Bybit has made every effort to advance recovery work in multiple aspects. The exchange said the legal action was a key step in strengthening asset protection and cooperating with law enforcement agencies and blockchain analytics companies to increase tracking efforts.

Bybit reported that it has recovered approximately $48.4 million and has frozen an additional $30.5 million on more than 28 exchanges and custodians around the world. The company is actively cooperating with international authorities, including the FBI, as part of a broader criminal investigation that is being conducted in parallel with civil litigation.

Lazarus Group's money laundering methods are closely watched

According to blockchain analysis firm Chainalysis, the attack on Bybit on February 21 resulted in nearly US$1.5 billion in ether losses, making it the largest single digital theft in cryptocurrency history. Analysts estimate that North Korea-related hackers stole at least $2.02 billion in encryption funds in 2025-a 51% increase from 2024, bringing the country's cumulative total cryptocurrency theft to an estimated $6.75 billion. The notorious North Korean cybercriminal organization Lazarus Group has been accused of using multiple methods to launder stolen assets. Chainalysis disclosed in detail its use of cross-chain bridge services, transaction mixers and methods of splitting large amounts of funds into small amounts to conceal origin and ownership.

Several law enforcement agencies around the world have taken actions against some infrastructure providers suspected of involvement in money laundering. German authorities banned the eXch exchange, and the Deru-Swiss joint operation destroyed the Cryptomixer.io service. Bybit said these actions will help crack down on illegal encryption channels.

Multi-platform tracking and asset freezing continue

Bybit emphasized that freezing digital assets does not automatically ensure their rapid return. This requires complex legal procedures, including identifying suspects, tracking asset flows, and obtaining judicial orders to achieve ultimate asset recovery. The exchange expects to seek further judicial action as new assets are identified. The current ban specifically covers funds transferred or held by defendant "John Doe". Efforts to track and secure more stolen crypto assets are still actively underway, with Bybit reporting that a total of $78.9 million has been recovered and frozen, representing only a small portion of the initial loss.

Market observers point to the growing importance of monitoring such legal and technical practices, especially as new platforms try to bridge the gap between traditional finance and digital finance. Chainalysis estimates that North Korean hackers stole at least $2.02 billion in cryptocurrency in 2025, with Bybit attacks accounting for the largest share of the total that year. The Bybit case continues to receive attention as law enforcement agencies, courts and the encryption industry join forces to crack down on international money laundering networks and improve the prospects for asset recovery in large-scale cyber attacks.