The cryptocurrency exchange platform Bybit has sued North Korea in a U.S. federal court over last year’s record-breaking $1.5 billion hack.
Key Takeaways
Bybit sued North Korea and Lazarus Group over a $1.5 billion hack from Feb. 21, 2025.A U.S. court froze stolen assets on July 30 after Bybit filed suit on June 18, 2026.Bybit has recovered $48.4 million so far, with over 90% of funds still untraceable.After the approval of what looked like a normal internal transfer, the hidden code altered the underlying transaction instead. That let attackers install a backdoor and drain the wallet in minutes.
Bybit Scrambles to Protect CustomersTracing that money has proven difficult. Attackers converted much of the ethereum into bitcoin and spread it across thousands of wallets using mixers, cross-chain bridges and unregulated trading platforms. By the time Bybit filed suit, the company said roughly 90% of the stolen assets had become untraceable.
North Korea’s Hacking Spree Grows Court Moves Fast to Freeze FundsBybit is seeking the return of its stolen funds, roughly $1.5 billion in damages, and additional punitive damages. The court has already moved on part of that request.
On June 19, a judge issued a temporary restraining order blocking the transfer of certain traceable assets. On July 30, the court partially granted a preliminary injunction freezing assets held by unidentified defendants tied to the stolen funds.
Recovery Efforts Yield Early ResultsZhou described the hack as “an attack on trust in our industry” and said Bybit remains committed to pursuing the case alongside law enforcement.
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