A new study by Bybit’s Lazarus Security Lab has revealed that 16 major blockchain networks can freeze users’ crypto on-chain. This capability allows blockchain foundations or validators to step in and restrict transactions, thereby challenging the core principle of decentralization. While these freezing mechanisms are often employed to prevent hacks, and other security risks, they also raise concerns about control, transparency, and the potential reintroduction of centralized authority in decentralized networks. Bybit has disclosed that its research report is the first large-scale investigation to identify which blockchains possess freezing capabilities and how they operate.
Bybit Exposes Blockchains With Crypto-Freezing Powers
In a Press Release, Bybit released a new research, unveiling blockchains with fund freezing mechanisms and examining the impact these capabilities have in the DeFi space. The study analyzed a total of 166 different blockchain networks and found that 16 currently possess crypto freezing powers, while 19 could support similar functions in the future.
To carry out this research, Bybit’s Lazarus Security Lab team utilized an AI agent to filter blockchains through in-depth manual code reviews, as most networks do not openly document these features.
The research team categorized the freezing capabilities of the 16 blockchain networks into three main mechanisms:
Hardcoded Freezing: It is embedded directly in blockchain’s core code, seen in networks like Chiliz (CHZ), Viction (VIC), XDC Network (XDC), Binance Coin (BNB), and VeChain (VET).
Configuration-based Freezing: Controlled through validator or foundation settings, 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, present in blockchains like Huobi ECO Chain (HECO).
Bybit has reported that fund freezing occurs when a blockchain locks a user’s assets without their consent. They highlight that these capabilities give these networks a level of control similar to that of traditional banks. The team has also emphasized that the research aims to provide greater transparency on blockchains while laying the groundwork for future studies and risk assessments in the digital asset industry.
Real Cases Of Blockchain Fund Freezing
Bybit’s Lazarus Security Lab team has also highlighted real-world incidents where crypto freezing was used to protect users and mitigate losses. Notably, in 2025, the SUI Foundation froze $162 million in assets following the Cetus Protocol hack in May, which resulted in a loss of over $220 million. Following this, Aptos added blacklisting functions to its network.
In 2022, the BNB Chain used hardcoded blacklists to contain a $570 million bridge exploit, preventing the attacker from accessing the funds. Notably, in 2019, VeChain set an early precedent by freezing funds after a $6.1 million breach. Meanwhile, Cosmos’s modular account design may allow similar interventions in the future.
These cases demonstrate how fund-freezing functions can act as emergency tools during large-scale security incidents. Bybit points out that although centralization remains a concern, many networks are implementing practical safety measures, even if they challenge the principle of complete decentralization, which is the core tenet of blockchain technology.
Featured image from Unsplash, chart from Tradingview.com
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