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.
If the seized proceeds came from illicit activities like drugs, terrorism, and others, the government might take ownership. But in cases where it is a business entity, they might decide to return it to the exchange, like in the case of Mt. Gox and FTX. The funds that were hacked from Bybit are customers's deposits. They would need these recovered funds to balance their financial books.
Now that there is a suspect, will Bybits recover it's lost funds. Can we still trust Bybit with our assets?
Good to hear that there is now a suspect. At least he could help investigators unravel the mystery behind this criminal network from North Korea.