Arthur Hayes Calls for Ethereum Rollback After $1.4B Bybit Hack

Highlights:

• Arthur Hayes has suggested rolling back Ethereum to help recover the stolen assets.
• The Bybit hack saw attackers steal funds from an ETH cold wallet and move them across multiple addresses.
• Experts warn a rollback will harm Ethereum and set a dangerous precedent.

BitMEX co-founder Arthur Hayes has proposed to roll back Ethereum in order to help recover the stolen coins from the Bybit hack. The attack caused Bybit to lose $1.4 billion, sparking fears in the crypto industry. Hayes argued that Ethereum had already done a rollback in 2016 to recover funds stolen when DAO was hacked. He questioned why a similar approach could not be taken now to assist Bybit.

.@VitalikButerin will you advocate to roll back the chain to help @Bybit_Official ?

— Arthur Hayes (@CryptoHayes) February 21, 2025

His statement has drawn support and criticism among the crypto community. Many believe that by reversing the blockchain, hackers cannot benefit from the loot. However, others argue that the Ethereum ecosystem has changed and that a rollback is no longer realistic.

The Bybit Hack: How $1.4 Billion in ETH was Stolen

The Bybit hack shocked the crypto world when it was discovered. The hackers compromised Bybit’s Ethereum cold wallet. They then transferred the stolen funds to a single address and later distributed them to more wallets. On-chain analysts tracked the movement of these funds as they were quickly swapped through decentralized exchanges.

Bybit CEO Ben Zhou confirmed that the attackers had full control of the compromised wallet. Despite the loss, he reassured users that the exchange remained solvent. In response, Binance and many other large exchanges offered to provide financial assistance to Bybit. In addition, experts believe that the notorious Lazarus Group from North Korea carried out the attack. The group is responsible for most of the major crypto attacks in the industry, such as the WazirX attack.

Industry Reactions: Divided Opinions on a Possible Rollback

Arthur Hayes has strongly advocated for reversing Ethereum’s blockchain to undo the hack. He stated that Ethereum had already sacrificed immutability in 2016. Therefore, he believes another rollback should be considered to recover the lost funds.

In addition, other experts in the crypto space have commented on the situation. JAN3 CEO Samson Mow fully backs the rolling back of Ethereum. He also argues that letting hackers keep stolen funds damages Ethereum’s credibility. Many have used social media to mock Ethereum’s leader, Vitalik Buterin. They claim that Ethereum’s centralized nature makes a rollback possible.

As @VitalikButerin & I discuss the best way to roll back the Ethereum chain, it’s best for everyone to stop trading ETH.

Given that the rolled back chain will have the ticker $ETH, it’s prudent to rename the current one to $ETHNK, which I believe Supreme Leader Kim Jong Un will…

— Samson Mow (@Excellion) February 22, 2025

Gautham Santhosh, co-founder of Polynomial.fi, believes that rolling back Ethereum would be highly disruptive. Ethereum, he explained, is now connected to stablecoins and other decentralized applications. A rollback would break some parts of the ecosystem, hence making the problem bigger.

To Roll Back or Not? Ethereum’s Future at a Crossroads

The debate over rolling back Ethereum highlights a major dilemma for the network. Supporters of the rollback argue that it will protect users and prevent illegal activities such as hacking, which will result in profit ventures. However, opponents have pointed out that blockchain immutability is one of the main principles of Ethereum, and it should not be changed.

Rolling back Ethereum could establish a dangerous precedent, as future events could pressure developers to repeat the process. In addition, it will reduce the trust that users have in the network. Rolling back would pose technical challenges and could destabilize the ecosystem.