#EthereumRollbackDebate The Bybit hack on February 21, 2025, occurred after a transfer from the exchange’s multisig wallet to a warm wallet, which appeared legitimate but contained malicious code that altered the logic of the smart contract to steal funds.

“The compromised interface made it appear as if the transaction was doing one thing while it was actually doing another,” Beiko said. Crypto commentators have since advocated for Ethereum $ETH

to be unwound in order to reverse the hack, undo the transaction and recover Bybit’s funds.

Beiko said it’s not that simple. He said that unlike The DAO exploit in 2016_which often caused confusion about unwounds_ there is no clear way to reverse this case without wider implications. He explained that the transaction looked like any other transaction and did not violate any protocol rules that would allow for a fix to recover hacked funds.