Ethereum Hack Sparks Debate: Should Blockchain Be Rolled Back?

The crypto community is grappling with the controversial idea of rolling back Ethereum’s blockchain following Bybit’s $1.4 billion hack. Some experts, including Arthur Hayes and Samson Mow, are pushing for this action, drawing parallels to Ethereum’s past rollback in response to the DAO hack in 2016. They argue that a similar move is necessary to prevent stolen funds from being misused by criminals or even states. However, this approach would reverse confirmed transactions and revert the blockchain to an earlier state, which raises significant concerns about trust and immutability. Arthur Hayes, co-founder of BitMEX, believes Ethereum’s commitment to immutability was compromised in 2016. Samson Mow agrees, arguing that reversing the hack could help prevent further illicit activities. On the other side, a large group of experts are against this rollback. Trader Borovik warns that reversing transactions would damage trust within the Ethereum network. Bitcoin advocate Jimmy Song also opposes it, stating that the DAO hack already allowed for a rollback within a short timeframe. Ethereum supporter Adriano Feria offers an alternative solution: Bybit could have employed a Layer 2 solution with reversible transactions to prevent such losses. He believes that blockchain adoption will face hurdles unless some form of reversibility is introduced, pushing people towards traditional finance systems that allow transaction reversals.