Key facts
- Bybit filed a civil lawsuit against North Korea, its Reconnaissance General Bureau, and the Lazarus Group.
- The lawsuit concerns a $1.5 billion crypto hack attributed to the Lazarus Group.
- A U.S. federal court granted Bybit expedited discovery to trace stolen assets.
- Bybit also secured a preliminary injunction to freeze certain traceable assets.
- The exchange is seeking compensatory, punitive, and treble damages under the RICO Act.
Crypto exchange Bybit has filed a civil lawsuit and secured an asset freeze against North Korea, its Reconnaissance General Bureau, and the Lazarus Group, holding them responsible for a $1.5 billion hack. A U.S. federal court granted Bybit expedited discovery, allowing the exchange to trace assets and pursue recovery. The lawsuit, filed under seal on June 18 and unsealed on Thursday, seeks to identify alleged intermediaries and recover a portion of the stolen funds that remain traceable. Bybit alleged that some traceable assets reached exchanges operating or maintaining infrastructure in the U.S. and sought account-holder identities, balances, and transaction histories. The court also granted a preliminary injunction on July 30, renewing a prior restraining order, to prevent the transfer or dissipation of identified stolen assets. As of June 18, Bybit stated that 90.2% of the stolen assets had become untraceable, with 9.8% remaining identifiable, of which 5.3% (approximately $75.5 million) had been frozen or recovered. The exchange is seeking compensatory, punitive, and treble damages under the U.S. Racketeer Influenced and Corrupt Organizations Act.