US court backs Bybit’s bid to trace funds from $1.5B North Korea hack
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
A US federal judge has supported crypto exchange Bybit’s effort to trace stolen funds linked to a $1.5 billion North Korea hack by granting expedited discovery. Bybit filed a lawsuit in June against North Korea, its Reconnaissance General Bureau, the Lazarus Group, and 20 unidentified defendants. The discovery process aims to help Bybit identify intermediaries and recover traceable assets instead of relying solely on a judgment against North Korea.
Why it matters
The court’s decision allows Bybit to pursue details such as account-holder identities and transaction histories on platforms operating in the US, which could aid in recovering a portion of the stolen assets. This legal development offers a practical means to target remaining traceable funds and prevent further transfers by defendants.
Key context
The hack took place in February 2025 after attackers compromised Safe Wallet’s infrastructure, exploiting developer credentials to inject malicious code. The FBI attributed the theft to North Korea. Bybit alleges that most stolen assets have since become untraceable due to mixers and cross-chain bridges. The lawsuit seeks compensatory and punitive damages along with treble damages under the US Racketeer Influenced and Corrupt Organizations Act.
Key numbers and entities
Key entities include Bybit, North Korea, its Reconnaissance General Bureau, the Lazarus Group, Safe Wallet, and the FBI. As of June 18, 2025, Bybit states that 90.2% of the stolen funds are untraceable, while 9.8% remain traceable, including approximately $75.5 million (5.3% of total) already frozen or recovered. The total stolen amount is approximately $1.5 billion.
What remains unclear
Some exhibits and court records remain sealed, limiting full public insight into the case. The source does not clarify the identities of the 20 unidentified defendants or the full extent of cooperation from other exchanges.