Ethereum [ETH] is at the center of a heated debate after Bybit CEO Ben Zhou floated the idea of rolling back the blockchain to recover stolen funds from a massive $1.4 billion hack. The proposal, which echoes Ethereum’s 2016 DAO hard fork, has sparked controversy, with industry leaders weighing in on its feasibility and implications.
Bybit’s Hack and the Call for a Rollback
Bybit recently suffered a devastating security breach, reportedly orchestrated by North Korea-linked hacker group Lazarus. The attackers drained approximately 489,395 ETH from the exchange, causing widespread panic among investors. As the exchange scrambles to mitigate losses, CEO Ben Zhou suggested that a blockchain rollback could be a potential solution—if the Ethereum community supports it.
Zhou emphasized that such a decision should be subject to community consensus, stating:
“Based on the spirit of blockchain, maybe it should be a voting process to see what the communities want.”
Arthur Hayes Backs the Proposal
Arthur Hayes, BitMEX co-founder and an influential Ethereum investor, reignited the debate by reaching out to Ethereum co-founder Vitalik Buterin on X (formerly Twitter).
.@VitalikButerin will you advocate to roll back the chain to help @Bybit_Official ?
— Arthur Hayes (@CryptoHayes) February 21, 2025
Hayes pointed to Ethereum’s 2016 DAO hack rollback as a precedent, arguing that if immutability was sacrificed once, it could be done again.
He remarked:
“ETH stopped being money in 2016 after the DAO hard fork. If the community wanted to do it again, I would support it.”
Can Ethereum Afford Another Hard Fork?
A rollback would essentially undo transactions leading up to the hack, reversing stolen ETH movements. While this could help Bybit recover lost assets, it raises serious concerns about Ethereum’s credibility and decentralization.
Back in 2016, Ethereum’s decision to fork resulted in the creation of Ethereum Classic (ETC)—a chain that retained the hacked transactions, highlighting the ideological divide over immutability.
What’s Next for Bybit and Ethereum?
Amid the turmoil, Bybit has launched a $140 million bounty to incentivize white-hat hackers to track and recover the stolen funds. With Lazarus actively moving ETH between wallets, blockchain analytics firm Lookonchain reports that the stolen assets remain in circulation.
Bybit hacker(from Lazarus Group) has transferred 10,000 $ETH($27M) to Bybit Exploiter 54 and began laundering funds.
— Lookonchain (@lookonchain) February 22, 2025
Bybit hacker currently holds 489,395 $ETH($1.32B) and 15,000 cmETH(unable to withdraw) in 53 other wallets. pic.twitter.com/mkeTec5gfR
While the Ethereum community debates, one question looms: Will another rollback set a dangerous precedent, or is it a necessary move to protect investors?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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