Following the recent Lazarus Group hack, which resulted in the theft of significant Ethereum holdings, a heated debate has emerged about the possibility of rolling back the Ethereum blockchain to invalidate the stolen funds.
Bybit CEO Explores All Avenues to Recover Stolen Funds
Bybit CEO Ben Zhou stated that the exchange is exploring all available measures to retrieve the stolen assets, including:
- Implementing a bounty program to incentivize individuals aiding in the fund’s recovery.
- Collaborating with law enforcement agencies.
- Engaging in discussions with the Ethereum Foundation to explore potential solutions.
Debate Over Ethereum Blockchain Rollback
During a Feb. 22 X Spaces discussion, Zhou was asked whether he supports a rollback of the Ethereum blockchain to a state before the Feb. 21 Lazarus Group hack. His response:
“I’m not sure if it’s one man’s decision. Based on the spirit of blockchain, maybe it should be a voting process to see what the communities want, but I am not sure.”
A blockchain rollback is not unprecedented. In 2016, following the DAO hack, Ethereum executed a hard fork, leading to the creation of Ethereum Classic (ETC), while the main Ethereum network (ETH) continued under the proof-of-stake model.
Lazarus Moves Stolen Funds as Bybit Announces Bounty Program
Onchain analytics firm Lookonchain reports that the Lazarus Group, believed to be tied to North Korea, currently holds approximately:
- 489,395 ETH (~$1.3 billion)
- 15,000 Mantle Restaked ETH (cmETH)
The group has been actively shuffling stolen funds between wallets to obscure their origins and launder assets onchain.
Industry Leaders Take Action Against Stolen Crypto
On Feb. 22, Bybit announced a 10% bounty program, offering up to $140 million for white-hat hackers who assist in recovering the stolen assets.
Other key industry responses include:
- Tether CEO Paolo Ardoino confirmed that Tether froze 181,000 USDT linked to the hack.
- Bitget CEO Gracy Chen announced the exchange would block transactions from wallets associated with the Lazarus Group.
What’s Next for Ethereum and the Crypto Community?
The possibility of rolling back the Ethereum blockchain remains uncertain, with the decentralized nature of blockchain governance making such a decision complex. However, the industry’s rapid response highlights the growing collaboration between crypto exchanges, regulatory bodies, and security firms in combating crypto-related cybercrime.
Stay tuned for further updates on this developing situation and its impact on the Ethereum ecosystem.
