Binance NOT rolling back Bitcoin network following hack: 'May damage BTC'

08 May, 2019
by Jelmer van der Dussen
Breaking News
Binance NOT rolling back Bitcoin network following hack: 'May damage BTC'

Binance will not perform a rollback on the Bitcoin network to recover the funds that have been stolen during the hack on the exchange on Wednesday. In the hack, 7000 BTC got stolen.

Binance CEO Changpeng Zhao says that Binance has decided to not pursue the 're-org' approach', after discussions with different miners. CZ lists four reasons, one of which is that they may damage the credibility of Bitcoin.

In an AMA shortly after the statement on the hack, CZ addressed the option that Binance could issue a rollback on the Bitcoin network. "There is the discussion about: do we want to issue a rollback on the Bitcoin network? Because right now 7000BTC, if we distribute that to miners, will be far higher than what they paid for the last few blocks. To be honest, we can actually do this in the next few days.

"But there are concerns if we do a rollback on the Bitcoin network at that scale. It may have some negative consequences for Bitcoin. So again, the team is still deciding that and we're running through the numbers and checking everything."

Those negative consequences are the dangers that come with a rollback, but more so the reputation of Bitcoin's decentralization.

Pros and cons
Binance has now decided to not issue the rollback after discussions with miners. CZ says that the pros were that they could 'revenge' the hackers by moving the fees to miners, that they could deter future hacking attempts in the process and that they could explore the possibility of how the Bitcoin network would deal with situations like these.

There were more cons however. According to CZ, 'we may damage the credibility of BTC, we may cause a split in both the Bitcoin network and in the community and the hackers did demonstrate certain weak points in our design and user confusion, that was not before.' CZ says 'it was a very expensive lessen for us, but it is nevertheless a lesson'.

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