Ethereum Rollback Deemed ‘Technically Intractable’ Amid Bybit Hack Pressure

Despite calls from the crypto industry to roll back the Ethereum network to its state before the Lazarus Group’s $1.5 billion hack on Bybit, Ethereum core developer Tim Beiko warns against it. He notes the complexity and significant consequences of such a move. “It’s worth breaking down why this reasonably sounding proposal is technically intractable for less knowledgeable observers,” Beiko said in a Feb. 22 X post. The Bybit hack occurred after a transfer from the exchange’s multisig wallet to a warm wallet, which appeared legitimate but contained malicious code altering the smart contract logic to steal funds. “A compromised interface made it appear as though a transaction was doing one thing while it was actually doing another,” Beiko explained. Unlike the 2016 TheDAO exploit, there’s no clear way to reverse this case without broader implications. Beiko emphasized that the transaction looked like any other and didn’t break protocol rules, making fund recovery difficult. He warned that a rollback could be highly disruptive due to Ethereum’s evolved ecosystem, including decentralized finance (DeFi) and crosschain bridges. “This level of interconnectedness means that any irregular state change would have near-intractable ripple effects,” he said. A complete rollback would undo all settled transactions without reversing the offchain side. Yuga Labs Blockchain vice president, known as 0xQuit, noted the impact of a rollback would exceed $1.5B, affecting countless innocent people. Some industry figures, like Jan3 CEO Samson Mow and BitMEX co-founder Arthur Hayes, advocated for a rollback. Meanwhile, Bybit CEO Ben Zhou suggested a community voting process to decide. — news from Cointelegraph

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