Crypto Exchange Takes on Dictatorship: Legal Battle Against North Korea and Hackers

The international crypto exchange Bybit is taking an unprecedented legal step: the company has filed a civil lawsuit in a federal court in Washington against North Korea, its intelligence agency, and the notorious hacker group "Lazarus Group".

The lawsuit follows a massive cyberattack in February 2025, during which crypto assets worth an estimated $1.5 billion were stolen — an event described by the court as one of the largest crypto thefts in history.

As part of the legal proceedings, Bybit obtained a temporary restraining order mandating the immediate freezing of stolen digital assets identified and held by anonymous parties. The court determined that the company demonstrated a high likelihood of success in the lawsuit. The civil legal action is proceeding in parallel with criminal investigations by US law enforcement agencies, with the goal of preventing money laundering and ensuring the preservation of recoverable assets.

"Our focus has not changed: to protect users, recover what is possible, and ensure that those responsible are held accountable," said Ben Zhou, co-founder and CEO of Bybit. "The Lazarus attack was a blow to the trust in the entire industry."

So far, the company has managed to recover approximately $48.4 million and freeze an additional $30.5 million across more than 28 exchanges and custodial entities, alongside cooperation that led to the closure of money laundering platforms in Europe.

The precedent-setting lawsuit by Bybit sets a new standard in the fight by private companies against cybercrimes led by hostile states. The combination of blockchain investigations, international cooperation, and civil legal tools proves that crypto entities are determined to fight for stolen funds and restore investor confidence in the sector.