Now that there is a suspect, will Bybits recover it's lost funds.
If the suspects pleads guilty to the charges, there is a chance that the money can be recovered, even if not hundred percent of the money, at least a good amount can still be recovered. But at the moment they are just mare suspects, we can't tell for now if the money will be recovered or not.
Can we still trust Bybit with our assets?
As always you are not supposed to trust any centralised exchange with your assets. This is why we have non custodial wallets. You should not trust any exchanges be it Bybit or any other exchanges. Go there conduct your transactions and take your assets off exchanges. Bybit is still a good exchange in carrying out transactions, but don't store your assets there or any other cex.