Ethereum Divided: Rollback Proposed to Reverse $1.5B Bybit Hack

The Ethereum community is divided over a proposed on-chain rollback following the recent Bybit hack, with some advocating for the move to reverse malicious transactions, while others warn of the potential damage to the network's credibility.

Bybit, a popular cryptocurrency exchange, suffered a significant security breach, leading to the theft of $1.5 billion in ETH. In response, some community members have suggested a blockchain rollback to nullify the hack and prevent the stolen assets from being used to fund North Korea's nuclear weapons programs.

BitMEX co-founder Arthur Hayes and Jan3 CEO Samson Mow have both expressed support for a rollback, citing the precedent set by Ethereum's hard fork in 2016. Mow even proposed renaming the current chain $ETHNK and delisting the token from major exchanges like Coinbase.

However, hardliners in the Ethereum community have pushed back against the rollback proposal, arguing that it would compromise the network's reliability and neutrality. Pseudonymous crypto trader Borovik and Bitcoin proponent Jimmy Song have both voiced their opposition, noting that the Bybit hack is a settled affair and that a rollback would set a dangerous precedent.

A blockchain rollback involves reversing confirmed transactions on a network to a previous state, typically in response to security breaches. The concept takes several forms, including forks and chain reorganizations. While some argue that a rollback is necessary to mitigate the damage caused by the Bybit hack, others warn that it could undermine Ethereum's credibility and set a dangerous precedent for future security incidents.