Bybit CEO Considers Ethereum Rollback as Lazarus Moves Stolen Crypto

Bybit CEO Weighs Ethereum Rollback as Lazarus Moves Stolen Crypto

Bybit, the world's largest cryptocurrency exchange, is exploring all possible options to recover the $1.4 billion stolen in the largest crypto hack in history. The hack, attributed to the North Korean-linked Lazarus Group, has left the crypto community on edge. Bybit CEO Ben Zhou has not ruled out the possibility of an Ethereum (ETH-USD) rollback, which would involve reversing the blockchain to a state before the hack, effectively invalidating the stolen funds.

In a Feb. 22 X Spaces discussion, Zhou stated that Bybit is working with law enforcement, industry partners, and the Ethereum Foundation to explore solutions. The Lazarus Group has already started moving the stolen funds between wallets in an attempt to launder the assets, according to Lookonchain.

Bybit has responded to the hack by launching a $140 million bounty for white-hat hackers who help track or recover the stolen crypto. CEO Ben Zhou thanked industry leaders like Tether CEO Paolo Ardoino, who confirmed that 181,000 USDT had been frozen.

The attack is part of a bigger trend. Blockchain investigator ZachXBT discovered that wallets used in the Bybit hack were also involved in January's $29 million Phemex hack. On-chain data shows that funds from both incidents have been commingled, further tying the attacks to the North Korean-backed Lazarus Group.

With Lazarus behind 61% of stolen crypto in 2024, Bybit's next moves—whether an Ethereum rollback, asset recovery, or security upgrades—could influence market confidence and impact crypto prices in the coming weeks.