Ethereum's $1.4B Hack: Hayes Proposes Controversial Rollback

Bybit, a major cryptocurrency exchange, has suffered a significant hack, resulting in the loss of approximately $1.4 billion in Ethereum (ETH). The incident has sparked a heated debate within the crypto community, with BitMEX co-founder Arthur Hayes suggesting a controversial solution: rolling back the Ethereum network to recover the stolen funds.

Hayes, a prominent ETH investor, took to Twitter to propose the idea, referencing the 2016 DAO hack as a precedent. In response to the DAO hack, Ethereum underwent a hard fork, splitting into Ethereum and Ethereum Classic, to recover $60 million. Hayes questioned why a similar measure couldn't be taken to rectify the Bybit hack.

The proposal has sparked mixed reactions. Some argue that a rollback could prevent bad actors from benefiting, while others express concerns about the potential disruption to Ethereum's complex ecosystem. Gautham Santhosh, co-founder of Polynomial.fi, warned that a rollback could break essential parts of the Ethereum ecosystem, making it an unrealistic option.

Sina 21st Capital raised concerns about Ethereum's future, stating that the network is in a tough spot. If it rolls back, it risks losing its decentralization. However, if it doesn't, the hackers, such as the North Korean group suspected of being behind the Bybit hack, get to keep the stolen funds. Either way, Ethereum's reputation could suffer.

Following the news of the Bybit hack and the debate over a possible rollback, Ethereum's price has dropped by around 3.7% in the last 24 hours. However, it is still moving within the $2,600 to $2,800 range. Ethereum is currently at a key resistance level of $2,600, which includes the 200-day moving average and the lower boundary of a descending wedge. If it fails to break through with upward movement, ETH could see further declines, possibly dropping toward the $2,500 mark.