CZ Binance Discusses Bitcoin Rollback After $41M Theft; Concedes It's Not Possible
After revealing that the exchange is considering pushing for a Bitcoin network rollback with support from miners, CZ has said that it is not possible.
It’s a tough day at Binance today, with the exchange announcing the discovery of a security breach which cost it over $41 million in user funds. CEO CZ (Changpeng Zhao) took to Twitter to share more details and also spoke of a discussion about rolling back the Bitcoin blockchain.
However, CZ’s implication that the Bitcoin network could be rolled back to nullify certain transactions drew criticism from some in the community, notably WhalePanda.
“While we're at it, can we please undo the Bitfinex hack and MtGox as well?
Fuck it, let's just reset everything and start from 0,”
wrote @WhalePanda on Twitter, after saying that covering the theft of 7,000 BTC should not be difficult for Binance if the exchange was truthful about its revenue.
Meanwhile, CZ shared that he spoke with the likes of Jeremy Rubin and Jihan Wu before deciding not to pursue the rollback, as it would damage the credibility of Bitcoin as an immutable ledger.
This claim of ‘deciding not to rollback’ was also criticized, with WhalePanda calling it ‘delusional’ and responding to CZ saying, “you couldn't even if you tried though…”.
After these comments, CZ decided to ‘put this to bed’, conceding that
“it's not possible, bitcoin ledger is the most immutable ledger on the planet”.
That being said, the fact that CZ even considered such a move by bringing miners onboard and effectively conducting a 51% attack, is a cause for concern, especially for Bitcoin’s reputation and the success of proposals pending around the technology.
Binance is one of the leading crypto exchanges, and the theft comes at a time when Bitcoin is attempting to cross the $6,000 price level. Fortunately for users, the exchange’s SAFU fund, which, according to CZ, has enough BTC (apart from BNB), should be able to cover the loss.