Tim Beiko, one of Ethereum's lead developers, has clarified that the blockchain cannot be rolled back following the devastating $1.4 billion hack that took place Friday.
As Beiko explained, there was no issue with the Ethereum protocol. "From the perspective of the Ethereum protocol, there is nothing to distinguish that transaction from other legitimate transactions on the network," he said.
The Ethereum blockchain famously underwent a hard fork in the aftermath of the DAO hack back in 2016. By exploiting a vulnerability in the DAO smart contract, the attacker managed to plunder roughly $60 million worth of ETH. A new version of the network was then created in order to erase the attacker's transactions. The older version of the chain that rejected the fork is known as Ethereum Classic.
Tomiwabold Olajide"Hacked funds from TheDAO were effectively frozen for a month, giving time for the community to coordinate on a software upgrade," Beiko recalled.
However, when it comes to the Bybit hack, the hacker immediately moved the funds. The complexity of today's Ethereum ecosystem makes it possible to obfuscate stolen funds.
As reported by U.Today, the funds were stolen due to a custodian being deceived by a fake multi-sig interface.
Dan BurginThe massive hack sent shock waves throughout the industry, with the price of Ethereum (ETH) slipping to the $2,600 level.
Meanwhile, Bybit's Ethereum reserves are already recovering following the 401,000 ETH loss.
The price of the flagship altcoin has also jumped back above the $2,800 level, easily shrugging off the Bybit shock.
Dan Burgin
Vladislav Sopov