I can't imagine that getting laws passed is going to help. The government can't just order a bank to restore funds, the way they can with regular currency. They could try forcing the culprit to return them, but it seems unlikely for the culprit to be in your jurisdiction.

I suppose we could pass laws to prevent them from ever spending the money in a country that they can control. Even then, they'd have to find ways around the funds being "laundered" through mixers.

You might be surprised how many crypto hackers have been arrested and convicted. Usually they want to spend the money in civilization.