On February 21, cryptocurrency exchange Bybit was hit by a hacker attack, resulting in a loss of up to $1.5 billion. This incident sparked a heated debate within the industry about whether Ethereum’s network should be rolled back to recover the losses. However, Ethereum core developer Tim Beiko recently pointed out that this seemingly “redemptive” solution is nearly impossible in reality and could even trigger an ecological disaster worse than the loss itself.
Beiko explained that, unlike the rollback triggered by the 2016 DAO incident, the recent hack did not target the Ethereum protocol’s core but exploited a vulnerability within the exchange itself. Rollbacks are not only technically challenging but could also create a domino effect, triggering a series of unpredictable consequences. He likened it to “trying to piece together a torn map in a storm—you may recover a few fragments, but the overall picture is already unrecognizable.” Moreover, undoing on-chain transactions would not align with off-chain financial flows, leading to a collapse in user trust and potentially undermining Ethereum’s credibility as a decentralized network.
Other voices within the industry have supported this perspective. Ethereum educator Anthony Sassano emphasized that Ethereum today is no longer the “immature” network of 2016. Its ecosystem has evolved into a complex organism, spanning DeFi, NFTs, smart contracts, and other areas. Any attempt to “turn back time” would be like randomly removing a gear from a finely tuned machine, with catastrophic consequences. Yuga Labs’ Vice President of Blockchain further added, from an economic perspective, that even if a rollback were technically feasible, its hidden costs—including market panic, user loss, and legal disputes—would likely far exceed the $1.5 billion loss, making it a net negative.
It is worth noting that Bybit CEO Ben Zhou, after the incident, stated that the decision of whether or not to roll back should not be made by one individual but should be determined by a community vote. He admitted, “The spirit of blockchain is decentralization, but I’m uncertain whether such a decision can truly unify consensus.” While this statement reflects respect for community governance, it also reveals a sense of helplessness and confusion in the face of crisis.
Looking back at history, the rollback after the 2016 DAO incident caused a community split and led to the creation of Ethereum Classic (ETC). Today, with a more mature network and greater risks, rollbacks are no longer a simple technical option but an “impossible triangle” involving philosophy, technology, and economics. Perhaps this incident serves as a reminder that while the promise of decentralization is appealing, when reality and ideals collide, healing the wounds is far wiser than attempting to erase history.