When Lazarus use Lightning Network to launder their hacked money, Lightning Network will be banned and the Protocol will be sanctioned, like Tornado Cash and its source code. The world doesn't stop spinning and cryptocurrency world will continue to be more weird with more serious regulations from governments globally.
Since the Lazarus group are moving around Bitcoins (I am pretty sure they are using Privacy coins like monero too) why haven't they sanctioned or banned Bitcoin yet?

Don't you see that the regulations are even odd?
There should be no single bans, domain seizures or sanctions in the first place.