The crypto world is buzzing with controversy again—this time, over a potential "rollback" of the Ethereum network after the massive hack on the Bybit exchange. With over $1.4 billion stolen, it's no surprise that solutions are being fiercely debated. Some argue for a radical approach: reversing Ethereum's blockchain to erase the hacker’s transactions and recover lost funds. Others warn that such a move could shake trust in Ethereum’s decentralization and security.
Bybit, one of the largest crypto exchanges, recently suffered the biggest hack in crypto history. Cybercriminals—reportedly tied to North Korea’s notorious Lazarus Group—drained a staggering $1.4 billion from the platform.
In response, Bybit launched a bounty program, offering 10% of recovered funds (up to $140 million) as a reward for information that helps track down the stolen assets. But the idea of a blockchain rollback has thrown the crypto community into a heated debate.
A blockchain rollback is exactly what it sounds like: a reversal of recent transactions to restore the network to a pre-hack state. In theory, this would make it as if the attack never happened. But there’s a catch—Ethereum is decentralized, and such a change requires community consensus.
Arthur Hayes, co-founder of BitMEX, supports the rollback idea. He points to the 2016 DAO hack, where Ethereum suffered a $60 million attack. Back then, the community agreed to a hard fork, splitting Ethereum into two chains: Ethereum (ETH) and Ethereum Classic (ETC). The fork effectively erased the hack’s effects on ETH but not on ETC.
Hayes argues that a similar approach could work for Bybit’s hack. But is the Ethereum community willing to take that risk again?
Many Ethereum developers and community leaders oppose the rollback idea. Critics argue that reversing transactions sets a dangerous precedent. If Ethereum can be “rewound” after a major hack, what stops it from happening again? Wouldn't this undermine blockchain's core principle of immutability?
Ethereum Foundation members have publicly dismissed the rollback proposal. Even Bybit CEO Ben Zhou remains cautious, stating in an X (formerly Twitter) Space discussion:
“I’m not sure if this is a one-man decision. Based on the spirit of blockchain, there should be a voting process to see what the communities want.”
This raises another issue: how could a decentralized vote work in time to recover stolen assets before they’re laundered?
Even if Ethereum’s validators and miners agreed to a rollback, implementing it wouldn’t be simple. Here’s why:
Ethereum’s price and credibility could suffer if the network appears manipulable by centralized actors.
Instead of a rollback, Bybit is taking a more traditional approach to recovering funds:
While these measures don’t offer instant relief, they uphold the principles of blockchain immutability and decentralization.
The Bybit hack and rollback debate highlight the ongoing tension between security and decentralization in crypto. Should Ethereum prioritize protecting investors or maintaining its trustless, immutable nature?
For now, a rollback seems unlikely, but the conversation isn’t over. This situation may push developers to create better security mechanisms to prevent massive exchange hacks in the future.
Instead of worrying about exchange hacks, why not earn crypto through secure and easy methods? Check out these top ways to stack up Bitcoin, Litecoin, and more without any upfront investment:
Start earning today and build your crypto portfolio risk-free!
Disclaimer: This article is for informational and entertainment purposes only. It should not be considered financial, legal, or investment advice. Always do your own research before making any financial decisions.
