Arthur Hayes Calls for Ethereum Rollback After $1.4B Bybit Hack Is ETHs Reputation at Risk?

Bybit, a cryptocurrency exchange, experienced a security breach resulting in the theft of $1.4 billion worth of Ethereum (ETH) from their offline storage. The stolen funds were initially consolidated into a single address and later dispersed across multiple wallets. Arthur Hayes, co-founder of BitMEX, publicly suggested rolling back the Ethereum network to reverse the hack and return the funds to Bybit, citing a similar rollback in 2016 following the DAO hack which recovered $60 million. This proposal has generated controversy, with some arguing against it due to the increased complexity of the Ethereum ecosystem compared to 2016 and the potential disruption to interconnected systems like stablecoins and Layer-2 solutions. Following the news of the hack and rollback discussion, the price of Ethereum fell by approximately 3.7%, trading between $2,600 and $2,800, a significant price level representing the 200-day moving average. Failure to move above this level could potentially lead to further price declines towards $2,500.