Bybit Takes Legal Action Against North Korea Over $1.5 Billion Hack

Bybit Takes Legal Action

The cryptocurrency platform Bybit has launched a lawsuit against North Korea, specifically targeting its Reconnaissance General Bureau and the notorious Lazarus Group, following a massive $1.5 billion theft in February 2025. This lawsuit was filed in U.S. federal court, seeking to reclaim the stolen assets.

The court has already issued a preliminary injunction aimed at freezing the identified stolen assets, which suggests that Bybit has a solid foundation for its claims in this case. Bybit’s CEO, Ben Zhou, described the theft as a significant breach of trust within the cryptocurrency sector, highlighting the company's proactive cooperation with law enforcement and other exchanges prior to legal action.

As of now, approximately $48 million has been successfully recovered, with another $31 million frozen across 28 different exchanges and custodial services. This collective amount represents around 5% of the total stolen funds.

Details of the Theft

The attack involved hackers accessing almost 500,000 ETH from a Bybit cold wallet by exploiting a flaw in the signing interface, which misled the approvers while altering the wallet's core functionality. Following the breach, Zhou reassured customers that Bybit remained financially stable and capable of absorbing the losses incurred.

In subsequent updates, Zhou noted that 69% of the stolen assets are still traceable, while 28% are believed to have completely disappeared, and 4% are currently frozen. Much of the stolen Ethereum was converted into Bitcoin through various mixers and exchanges. Notably, a portion of the funds was traced by Greek authorities back to a local exchange, resulting in a seizure order in June 2025.