Understanding Blockchain Networks with Crypto-Freezing Capabilities
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A recent comprehensive study conducted by Bybit’s Lazarus Security Lab has uncovered that 16 prominent blockchain networks possess the capability to freeze users’ cryptocurrency on-chain. This finding introduces a significant challenge to the core ideal of decentralization, as these networks can intervene to restrict transactions. Although such mechanisms are designed to deter hacks and mitigate security risks, they also raise critical questions about control, transparency, and the potential reemergence of centralized authority within decentralized systems. Bybit has proudly announced its research as the first comprehensive examination of blockchain networks with freezing capabilities, shedding light on how they function.
Revealing Blockchains Empowered with Crypto-Freezing Mechanisms
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In a recent press release, Bybit unveiled its groundbreaking research, highlighting blockchains equipped with fund-freezing capabilities and exploring their implications within the DeFi landscape. The study meticulously analyzed a total of 166 blockchain networks, concluding that 16 currently possess the power to freeze cryptocurrency, with an additional 19 potentially supporting similar functions in the future.
The research team at Bybit’s Lazarus Security Lab employed an AI agent to meticulously examine blockchains through detailed manual code reviews, given that many networks do not openly disclose these features.
Mechanisms of Crypto-Freezing on Blockchain Networks
- Hardcoded Freezing: This mechanism is embedded directly within the blockchain’s core code, observed in networks such as Chiliz (CHZ), Viction (VIC), XDC Network (XDC), Binance Coin (BNB), and VeChain (VET).
- Configuration-based Freezing: Controlled through validator or foundation settings, this mechanism is found in Harmony (ONE), Havah (HVH), SUPRA, APTOS (APT), EOS, Oasis (ROSE), WAX (WAXP), SUI, LINEA, and WAVES.
- On-chain Freezing: Executed via system-level contracts, this mechanism is present in blockchains like Huobi ECO Chain (HECO).
Bybit’s report clarifies that fund freezing can occur when a blockchain locks a user’s assets without their consent, granting these networks a level of control akin to that of traditional banks. The research aims to enhance transparency regarding blockchain networks while laying the foundation for future studies and risk assessments in the digital asset realm.
Real-World Instances of Blockchain Fund Freezing
Bybit’s Lazarus Security Lab has also documented real-world scenarios where crypto-freezing was utilized to protect users and avert losses. In 2025, the SUI Foundation froze $162 million in assets after the Cetus Protocol hack in May, which resulted in a loss of over $220 million. Consequently, Aptos incorporated blacklisting functions into its network.
In 2022, the BNB Chain employed hardcoded blacklists to thwart a $570 million bridge exploit, preventing the attacker from accessing the funds. Notably, in 2019, VeChain set an early precedent by freezing funds following a $6.1 million breach. Furthermore, Cosmos’s modular account design might allow similar interventions in the future.
These cases illustrate how fund-freezing functions can serve as emergency tools during large-scale security incidents. Bybit emphasizes that while centralization remains a concern, many networks are adopting practical safety measures, even if they challenge the principle of absolute decentralization at the heart of blockchain technology.
The overall cryptocurrency market stands at $3.44 trillion on the 1D chart.
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