Ethereum core developer Tim Beiko has addressed the growing demands for rolling back the Ethereum network following the $1.5 billion hack of the crypto exchange Bybit by the Lazarus Group. Beiko emphasized that the idea of a network rollback is “technically intractable,” highlighting the complexity and potential consequences of such a move.
The Bybit hack, which took place on February 21, involved a transfer from the exchange’s multisig wallet to a warm wallet. This transaction appeared legitimate but contained malicious code that altered smart contract logic to siphon funds. Beiko clarified that the hack did not violate any protocol rules that would permit the recovery of the stolen funds, contrasting it with the well-known 2016 TheDAO exploit where a rollback was feasible.
During TheDAO incident, a built-in failsafe halted withdrawals, allowing developers to correct the issue and avert the hacker’s access to the stolen Ether (ETH). However, in the Bybit case, the hackers quickly moved the funds on-chain, leaving no application-based remedy for reversal.
Beiko pointed out that rolling back Ethereum now would have “near-intractable ripple effects” due to the advanced state of Ethereum’s ecosystem, which encompasses decentralized finance (DeFi) and cross-chain bridges. Undoing settled transactions could severely disrupt numerous financial operations, affecting both digital and real-world asset exchanges.
Anthony Sassano, an Ethereum educator, echoed Beiko’s concerns, indicating that reversing the chain would not align with past incident handling protocols. Yuga Labs’ Blockchain VP, known as 0xQuit, argued that the consequences of a rollback would surpass the financial cost of the hack, resulting in widespread undeserved financial gains and losses.
While some industry executives, including Jan3’s CEO Samson Mow and BitMEX co-founder Arthur Hayes, have advocated for a rollback to prevent the potential use of stolen funds by the North Korean government, others like Bybit CEO Ben Zhou suggest a community voting process to decide the path forward, consistent with blockchain’s ethos. However, there is no consensus, and the debate within the crypto community continues.
