The study, Blockchain Freezing Exposed, found that 16 major blockchains include code that allows them to freeze user funds. This means certain networks can restrict access to assets under specific conditions.
The findings raise an important question: how much control should developers and validators have over users’ money in the name of security?
Freezing Funds in the Name of Safety
Bybit’s research team analyzed 166 blockchains using a mix of AI and manual review to identify code that enables fund freezing or blacklisting. Out of those, 16 currently have freezing functions built in, and another 19 could activate them with only minor updates. These functions fall into three main categories.
Hardcoded freezing is embedded directly in the blockchain’s code, seen in networks like BNB Chain and VeChain. Configuration-based freezing allows validators or foundations to pause or restrict accounts, as used by Sui and Aptos. Lastly, on-chain contract freezing works through smart contracts that can block funds or wallets, a method found in HECO.
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Summary:
– ByBit analyzed 166 blockchains and found 16 have freezing function, another 19 could introduce the mwith minor protocol changes.
– 3… pic.twitter.com/cXDhu32pCD— armin 🔺 (@arminreiter) November 12, 2025
The report provides several real-world cases. In 2022, BNB Chain used hardcoded blacklists to stop a $570 million bridge exploit, preventing the attacker from cashing out. Earlier, in 2019, VeChain froze $6.6 million in stolen tokens after a major breach. More recently, Sui froze $162 million tied to the Cetus hack, with Aptos adding blacklisting tools soon after. These examples show how emergency measures can prevent further losses during major attacks, even if they slightly compromise decentralization.
Balancing Trust and Control
According to David Zong, Head of Group Risk Control and Security at Bybit, the goal is transparency, not control. “Blockchain was built on the principle of decentralization, yet our research shows that many networks are developing pragmatic safety mechanisms to respond quickly to threats,” he explained.
1/ Bybit revealed something shocking…@Bybit_Official‘s Lazarus Security Lab uncovered hidden fund-freezing functions in 16 major blockchains. This is a major red flag for giants, but it actually highlights why @cosmos and $ATOM approach is so strong.
A thread 🧵👇 pic.twitter.com/OeN74qZeVS
— tøny (@tonyler_) November 12, 2025
The report’s AI-assisted framework scanned blockchain codebases for modules related to blacklisting, transaction filtering, and configuration updates. Each result was manually verified to ensure accuracy. The conclusion was clear: transparency about these safety tools should become a key part of blockchain governance.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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