Bybit: 16 Blockchains Can Freeze Funds; 19 More May Follow

Bybit’s Lazarus Security Lab has found that 16 major blockchain networks are equipped with built-in fund freezing mechanisms. Researchers identified three methods: hardcoded blacklists on chains like BNB (BNB) and VeChain (VET); configuration-based controls on networks such as Sui (SUI), Aptos (APT), and EOS (EOS); and on-chain smart contracts, used for example on Huobi ECO Chain (HECO). An additional 19 chains, including Arbitrum (ARB) and Cosmos (ATOM), could add fund freezing with minimal code changes. The lab highlighted five real-world interventions where fund freezing helped limit losses. Sui froze $162 million after a Cetus DEX hack, later returning assets with 90.9% governance approval. BNB Chain blacklisted attacker addresses post-October 2022 exploit, capping withdrawals at roughly $100–110 million. VeChain blocked 469 addresses after a $6.6 million wallet hack. Aptos activated emergency freeze features one month after Sui’s intervention. While these security measures have proven effective, the report warns they challenge core decentralization principles. By granting foundations or validator groups bank-like override powers, fund freezing could undermine censorship resistance. Traders are advised to monitor governance updates across these networks for any changes in freezing policies. As institutional adoption and regulation increase, more blockchains may deploy emergency freeze controls.