Bybit Report Reveals Blockchains That Can Freeze Your Crypto

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Bybit Report Finds 16 Blockchains Have Built-In Fund Freezing Capabilities

The post Bybit Report Reveals Blockchains That Can Freeze Your Crypto appeared first on Coinpedia Fintech News

A shocking new report by Bybit’s Lazarus Security Lab has revealed something many crypto users never expected, some of the world’s biggest blockchains may have the power to freeze your funds. 

The study uncovered that 16 major blockchains have built-in features that allow fund freezing, while 19 others could add such powers with small updates.

Blockchains That Can Freeze Your Crypto

The report, titled “Blockchain Freezing Exposed,” examined 166 blockchains using AI-powered analysis and manual code reviews. It exposes how certain blockchains can, under specific conditions, intervene and restrict user transactions, a move that has sparked both curiosity and debate in the crypto community.

According to the report, blockchains have adopted different technical methods to enable freezing functions:

  • Hardcoded freezing — directly written into the codebase, as seen in BNB Chain, VeChain, and XDC.
  • Configuration-based freezing — managed by validators or network operators, found in Aptos, Sui, and Linea.
  • On-chain contract freezing — triggered through on-chain contract functions, such as in HECO.

Meanwhile, all these capabilities are designed to help blockchains respond quickly during hacks or exploits, allowing them to contain stolen funds before they are moved or laundered.

Real Cases of Fund Intervention

Several past incidents have already shown these powers in action. After the Cetus hack, Sui froze about $162 million worth of stolen tokens. 

BNB Chain used blacklisting tools to stop the movement of $570 million from a major bridge exploit. Meanwhile, Sui froze $162 million after the Cetus hack, while Aptos followed up with its own blacklisting update. 

Additionally, VeChain, as early as 2019, froze stolen assets from a $6.6 million breach.

Balancing Safety and Decentralization

While fund-freezing can help reduce losses, it also raises questions about decentralization and control.

David Zong, Head of Group Risk Control and Security at Bybit, explained that while blockchain was built on decentralization, these mechanisms are becoming “pragmatic safety tools” to protect users during emergencies. 

He added that transparency is key to maintaining trust as the industry matures. As the crypto space matures, the report urges developers to be open about such features.

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