Tim Beiko: “Bybit Hack Was Not Caused by a Bug Inside Ethereum”
Ethereum developer Tim Beiko has firmly stated that a rollback of the Ethereum network to reverse the stolen funds is not possible. He emphasized that implementing such a reversal would have serious consequences for the stability and integrity of the Ethereum network.
In response to the hack, some crypto commentators questioned whether Ethereum could roll back transactions, as was done in the aftermath of the 2016 TheDAO hack. However, Beiko explained that the two incidents are fundamentally different in nature.
- TheDAO hack involved a vulnerability in a smart contract built on Ethereum.
- The Bybit hack did not violate Ethereum’s protocol rules but exploited weaknesses in Bybit’s multisig interface.
- The attack allowed unauthorized fund transfers, making tampering with the transaction nearly impossible.
Why Ethereum Can’t Implement a Rollback for Bybit Hack
Beiko highlighted the key differences between the two incidents. In 2016, TheDAO hack funds were frozen for a month, allowing the Ethereum community to implement a “non-discretionary state change” to recover the funds. In contrast, the Bybit hacker was able to move the stolen funds immediately, making any rollback impractical.
Moreover, the Ethereum ecosystem has evolved significantly since 2016. The rise of decentralized finance (DeFi) and cross-chain bridges has created a highly interconnected environment, where reversing transactions could lead to unwanted disruptions.
Historical Rollbacks: Bitcoin & Ethereum’s Early Years
To further explain the concept of rollbacks, Beiko referenced a historical case from Bitcoin’s early years. In 2010, a bug in Bitcoin’s code resulted in the accidental minting of 184 billion BTC. Satoshi Nakamoto quickly issued a fix, and since Bitcoin’s adoption and mining difficulty were low at the time, the community accepted the rollback.
Ethereum also experienced a similar buyback during TheDAO hack in 2016. This led to a split in the community, resulting in the creation of Ethereum Classic (ETC).
Opposition to Rollbacks: Ethereum’s Commitment to Immutability
Since then, proposals for similar interventions, like EIP-999, which aimed to recover funds frozen by the Parity wallet bug in 2018, have faced strong opposition. The Ethereum community has largely distanced itself from such interventions to preserve the immutability of the network and avoid setting dangerous precedents for future issues.
Bybit CEO’s Response and Next Steps
Bybit CEO Ben has acknowledged the seriousness of the recent hack. However, he pointed out that the stolen funds only account for around 0.3% to 0.4% of Ethereum’s total supply—much less than the 30% involved in TheDAO’s rollback. Due to the relatively small impact, a rollback is highly unlikely.
Despite this, Bybit is actively seeking guidance from Ethereum co-founder Vitalik Buterin to explore possible solutions for the situation.
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