The law enforcement seized $38 million from exch and it was said to be connected to the Bybit hack. That means exch received the coins from the North Korean hackers but not did not process the transaction and hold it? Or the is just a lie from the prosecutors by seizing the coins from the exchange because we know that the exchange is having money on its own.
From my understanding of the translated statement above
(not sure if you read something else somewhere?) and from what I have seen before from ZachXBT and others on Twitter, I don't believe they ever froze any funds from Bybit hack. The seized money probably comes from the exchange
's hot wallets (their liquidity pools) they used to process users transactions.