They said they are basically freezing the funds received and keeping the funds for themselves. Punishing the customers of exch, not the hackers from bybit.
If they are
keeping the funds for themselves, then they have to be reported to the police, because that is fraud.
What does any KYC exchange do with frozen funds? We've mostly gotten to the point where they freeze funds they think are illegitimate, but what's the procedure after that? Do they look for the original owner they think the coins belong to? do they give those coins to the authorities, or do they keep them for themselves?