NewsEthereum in Trouble After $1.4B Bybit Hack? Arthur Hayes Calls for 2016-Like Rollback
Mustafa Mulla22 Feb 20253 min read
The recent $1.4 billion Bybit hack has sent shockwaves through the crypto world. Hackers managed to breach Bybit’s ETH cold wallet, swiftly moving the stolen funds to a single address before scattering them across multiple wallets. The sheer scale of the attack has left many wondering – can anything be done to recover the lost funds?
Arthur Hayes, the BitMEX co-founder, has proposed a bold and controversial idea: rolling back the Ethereum network to undo the damage. But is such a drastic move even possible? And what would it mean for Ethereum’s future?
Arthur Hayes Calls for Ethereum Rollback
Addressing Ethereum co-founder Vitalik Buterin Vitalik Buterin at Ethereum Vitalik Buterin is a well-known tech geek, influencer, and computer programmer. To promote the blockchain, he started Bitcoin Magazine and provided blockchain information for cryptocurrency investors. In 2015, he co-founded Ethereum, a blockchain platform that contributed to decentralized finance. Quick Facts Full name Vitaly Dmitrievich Buterin Birth 31-01-1994, Kolomna, Russia Education University of Waterloo Wife/Partner To be updated / Not Married Famous for Ethereum, ETH, Blockchain advocate/promoter Net Worth $1B (refer for real-time) Buterin recognized the need for decentralized finance and used smart contracts to publish the Ethereum whitepaper. His contributions paved the way for Ethereum's transition to Proof-of-Stake, which proved to be scalable and effective. Furthermore, he introduced Ether (ETH), the blockchain platform's native coin. A Timeline of Vitalik’s Career Co-founded Bitcoin Magazine (2011) – Established one of the first crypto publications, writing extensively on Bitcoin and blockchain. Authored Ethereum Whitepaper (2013) – Proposed a blockchain with smart contract functionality for decentralized applications (d Apps). Co-founded Ethereum (2015) – Launched Ethereum after a successful $18M ICO, revolutionizing the blockchain ecosystem. Developed Ethereum Virtual Machine (2015–2016) – Created the EVM, enabling developers to build and deploy smart contracts. Worked on Ethereum Scalability (2017–2021) – Contributed to Layer 2 solutions like Rollups, Plasma, and Sharding. Led Ethereum’s Transition to Proof-of-Stake (2018–2022) – Helped develop and implement Ethereum 2.0, merging the Beacon Chain in 2022. Blockchain Research & Cryptography (2016–Present) – Focused on zk-SNARKs, privacy tech, and decentralized governance models. Philanthropy & Crypto Advocacy (2017–Present) – Donated millions in crypto for pandemic relief, AI research, and financial inclusion. [email protected] EntrepreneurCrypto and Blockchain Expert on X (formerly Twitter), Hayes pointed out that Ethereum performed a rollback in 2016 after the DAO hack. That event led to a hard fork, splitting Ethereum into Ethereum (ETH) and Ethereum Classic (ETC) to recover $60 million in stolen funds.
“I would support it because we already voted no on immutability in 2016—why not do it again?”
Crypto Community Divided Over Rollback Idea
Hayes’ suggestion has sparked intense debate. Some believe a rollback could stop hackers from profiting, while others argue that Ethereum is now too complex for such a move.
Gautham Santhosh, co-founder of Polynomial.fi, warned that a rollback could break key parts of the Ethereum network, including stablecoins, Layer-2 solutions, and DeFi projects, making it unrealistic.
Meanwhile, investment firm Sina 21st Capital highlighted Ethereum’s dilemma: if it rolls back, it risks losing its reputation for decentralization. But if it doesn’t, hackers—possibly linked to North Korea—keep the stolen funds. Either way, Ethereum’s credibility is on the line.
Ethereum Price Under Pressure
The Bybit hack and the rollback debate have shaken the market. Ethereum’s price has fallen about 3.7% in the past 24 hours but remains within the $2,600 to $2,800 range.
Currently, ETH is facing resistance at $2,600, a key level that aligns with the 200-day moving average and the lower boundary of a descending wedge. If Ethereum fails to break above this level, it could drop further toward $2,500.
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