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.
How did you know that German government will keep it and won't return the fund back ot Bybit?
I am not a lawyer and I don't know about legal process but I doubt that German government will easily do it nowadays and in future. Things changed in cryptocurrency market and there will be considerable legal changes too so I don't assume that governments exclusively German government will be able to do similarly to their past cryptocurrency seizures and actions after that.
They did it in the past with bitcoin.
https://cointelegraph.com/news/german-government-offloads-final-bitcoin-holdings