Bybit Sues North Korea Over Record-Breaking $1.5B Crypto Heist

Bybit has taken an extraordinary step in suing North Korea over a $1.5 billion hack. The cryptocurrency exchange filed a civil lawsuit against the Democratic People's Republic of Korea, its Reconnaissance General Bureau intelligence agency, and the Lazarus Group, which U.S. authorities have blamed for the theft.

The lawsuit uses blockchain forensics to trace and recover stolen funds, potentially establishing a new recovery playbook for crypto theft victims. Bybit is seeking $1.5 billion in damages, as well as the return of the stolen funds.

A federal judge granted a temporary restraining order and partial preliminary injunction, freezing certain traceable stolen assets while the case proceeds. This means that exchanges and custodians holding identified portions of the stolen assets cannot transfer or sell them without court permission.