16 blockchains can freeze your funds! Bybit report
The post 16 blockchains can freeze your funds! Bybit report appeared on BitcoinEthereumNews.com.
Key Takeaways Which blockchains can currently freeze user funds? Sixteen chains possess active freezing capabilities through three distinct methods. What do freezing capabilities mean for crypto traders? Fund freezing capabilities fundamentally challenge crypto’s promise of censorship resistance by granting foundations bank-like override powers. Sixteen major blockchains possess built-in capabilities to freeze user funds without consent, according to research released by Bybit’s Lazarus Security Lab on 12 November. The investigation analyzed 166 blockchain networks and discovered that an additional 19 chains could activate similar powers with minor code modifications. The findings force uncomfortable questions about whether “decentralized” networks remain so in practice, as foundations and validators wield emergency controls that mirror traditional banking systems. Traders who believed their crypto assets existed beyond institutional reach now face a different reality. Three freezing methods detected Bybit’s researchers identified three distinct mechanisms blockchain foundations use to lock user assets. Hardcoded freezing embeds blacklisting are directly integrated into the blockchain code, creating public blocklists visible on GitHub. BNB Chain, VeChain, Chiliz, Viction, and XDC Network employ this method. Source: Bybit Configuration-based freezing operates through private validator settings, allowing foundations to add addresses to local blacklist files invisible to the public. Sui, Aptos, Harmony, Supra, EOS, Oasis, Wax, and Waves use this approach. The Huobi ECO Chain stands alone in managing blacklists through on-chain smart contracts. Each method blocks targeted addresses from signing transactions, effectively locking funds until foundations remove the restriction. No private key or wallet security can override these protocol-level controls. Real-world interventions The research documented five major incidents where blockchains exercised freezing powers. Sui froze $162 million after the Cetus DEX hack in May 2025, then used governance votes with 90.9 percent approval to transfer recovered funds back to victims. BNB Chain deployed a hardcoded blacklisting feature after the October 2022 $570 million…
