According to ZachXBT, I think this might be the reason:
Also, maybe they had them on their radar before after all exch has been existing for like more than a decade now.

Everyone knows that they were actually hacked, which is their fault of course, but how can you prove that all the coins seized from this platform is part of the bybit stolen money, when the hackers have moved the coins in so many different ways and directions.
When assets are seized from illicit individuals and institutions, more often than not, the asset is forfeited to the government after the legal process is complete. In this case though, the authorities have just taken assets from a platform they do not like because they don't comply with KYC laws, i am sure they cannot be sure that the assets belong to bybit.

Yes, all the 3 exchange platform helped the Bybit hacker to laundery the stolen cryptocurrency but both OK Dex and ParaSwap was not shutdown because they decentralized platform, and also show some level of cooperation when they were called out. Besides, it lead to a dispute among the ParaSwap DAO's delegate, and OKX on the other hand shutdown their Dex service which I never see or hear anything about eXch doing anything related to that and from the record eXch is a privacy automatic cryptocurrency exchange, which I believe it is not decentralized.

It is not possible for them to recover 100% of the fund, but why would anyone trust CEX with his/her own asset when they are not to be use as storage in the first place.

Despite the hack, Bybit is still running their exchange perfectly okay and no user complained that they  lost their asset because of the hack. Do I still use bybit exchange? Yes I do and that the exchange has been serving me well but I don't keep my coins on the exchange, keeping your coins in a centralized exchange is at your own risk, it's either the exchange gets hacked or your own gets hacked.

The only problem with this is that German government will not send the recovered funds back to bybit. Instead, they will keep it and dump it on the market as they have always done. I know the right way would be to refund it back to bybit but I don't think these guys will return any of it.

I am starting to notice an increase in the number of topics blaming more privacy oriented services, software or what ever else it is and attacking them for apparently no real reason.  It makes me wonder if these are real topics and written by real people.  If not, then either the dead internet theory is strongly here or the society is preparing to collapse at a fast pace.

Since when is freedom helping crime?  Is this where we are heading?  Is it the right path?  Because if ancestors and generations close to us died fighting for us to be more free, it would be an under statement to say that we are stupidly heading back to what the world was before they fought.  It is unbelievable to me that I start noticing more and more people bashing freedom and cheering invasive laws, procedures and services.

eXch is not HELPING criminals by simply existing.  If anything, like NotATether said before me, the hacked exchange 'helped' them steal the funds.

In fact.  I did not check the direct transactions to see what and how, but if they came directly from a Bybit wallet to an eXch wallet, even if eXch had Know Your Customer and all the other stupidly invasive procedures, it is likely that eXch still passed the transaction as legitimate consdiering it comes from an EXCHANGE.  You know, the platform some people believe are getting shiny clean Bitcoin from!

But, the irony!  Mixers are bad, Tornado is bad.  Do not send them money to get a piece of Bitcoin unrelated to you in exchange.  That is Money Laundering.  Send your Bitcoin to an invasive exchange instead, they will send you a piece of Bitcoin that is clean of any crime!  That is legitimate and the only right way to do it!

A handful (<10) of companies most likely control almost the entire market share for blockchain analysis, so it wouldn't surprise me if all it takes for arbitrary transactions to be flagged as high-risk is a few phone calls between their directors.

There is no transparency into this process at all.

Normal people, and small businesses, are not allowed by these companies to get a detailed report on their addresses to check if they are compliant. Large enterprises only.

Even the exchanges who freeze funds and require KYC aren't safe. Because the only way to know for sure that they haven't processed a high-risk transaction by accident is to subscribe to these expensive products that give access to the database of risky addresses.

Since we already know that state governments essentially rely on these products to create their sanctions list (how else do you think Royse777's escrow address for the Sinbad campaign got added?), that means a handful of people control the global AML database, and provide the only access to it.

So if you don't have millions of dollars of (clean, probably VC funded) cash/crypto to pay, you cannot compete. You cannot launch an exchange legally. Even BestChange's exchangers, which try to operate within the law and ask for KYC, get seized regularly.

And all this does is centralize the exchange market share to 3-5 giant companies that everyone is then forced to use. Unless you choose to use no-KYC mixers, which will continue to be created and ignore AML laws - and rightfully so because without paying for these products, how do they pass on the frozen transactions to the government?

How did I know? I don't.

Like you, I'm not a lawyer and I'm also not conversant with legal matters but I do know governments and how shady they can be. Can we honestly agree that German government will make contact with Bybit and ask for their addresses too return all the recovered assets?

Regulations only changed much in the US—I'm not sure if we can say thee same for Germany.

That doesn't add to 38 millions I don't see how the government could have seized LTC from the hack when Ethereum was stolen from bybit!


You are accusing exch of helping with the stealing or what?
For an article making it over here on Bitcointalk I've never seen something this biased in a while, even a police or law enforcement statement would be less than this.


They will return coins or the value of those if there is a criminal case against, if the coins are owned by a guilty party they will proceeded to confiscate the coins like it happened with Movie2k, the same happened with Bitfinex funds that have been returned and funds seized from SR that have sold.

Its fully fund from exchange hack not user fund because Bybit keep running well without have withdrawing problem for all user, if exchange keep running well maybe they have bigger back up fund than fund have been stolen and Bybit keep operation such as usually until right now. However keep 100% of cryptocurrency assets in exchange wallet not guarantee secure learning from FTX exchange bankrupt last two years ago without refund to their user.

Lets see few weeks later what happen with 38 million dollar seized by German government will refund to Bybit exchange or become Germany's government assets although its not all Bybit fund. In this cases, usually US and Germany government never return back the seized cryptocurrency assets and taking hold the seized assets before selling such as last year ago Germany government sold 50k bitcoin.