Bybit's Security Lab Unveils the Fund-Freezing Capabilities of Major Blockchains

A recent analysis conducted by Bybit's Lazarus Security Lab has illuminated a crucial aspect of blockchain technology that many users may not be aware of: many major blockchains possess built-in functions that can freeze or limit access to user funds. Published on November 12, 2025, the report titled Blockchain Freezing Exposed: Examining the Impact of Fund Freezing Ability in Blockchain represents the first extensive study of how these functionalities can be leveraged during security incidents, such as hacks and exploits.

The examination involved an AI-powered analysis of 166 blockchain networks, in tandem with a manual review, allowing the researchers to identify systems with fund-freezing capabilities effectively. Shockingly, 16 of these blockchain networks already incorporate mechanisms that enable them to freeze assets, while another 19 could potentially add these features with minimal changes to their protocols.

In the report, three distinct methods of fund-freezing are classified:
1. Hardcoded Freezing: Mechanisms embedded directly in the blockchain code, exemplified by platforms like BNB Chain and VeChain.
2. Configuration-based Freezing: Controlled via settings established by validators or foundations, seen in networks like Sui and Aptos.
3. On-chain Contract Freezing: Executed through specific on-chain contracts, as observed in HECO.

Several notable instances of these interventions are highlighted in the study. For example, the Sui network was able to freeze $162 million in assets following the Cetus hack, a critical response to a security breach. Afterward, Aptos implemented blacklisting capabilities to bolster their defenses. In a more significant incident, BNB Chain utilized hardcoded blacklists to contain losses amounting to $570 million due to a bridge exploit. The groundwork for such actions was first established by VeChain in 2019, when it froze funds linked to a $6.6 million breach. The report also suggests that the modular account design of Cosmos may lead to comparable interventions down the line.

These case studies underscore the idea that fund-freezing mechanisms can serve as vital tools during emergencies, creating a safety net for users impacted by extensive security violations. David Zong, the Head of Group Risk Control and Security at Bybit, elaborated on this issue by stating, "While blockchain is fundamentally grounded in decentralization, our findings reveal that numerous networks are increasingly adopting pragmatic safety measures to swiftly address potential threats. Transparency is essential in nurturing trust within the industry."

To conduct the analysis, Lazarus Security Lab constructed an AI-assisted framework to identify code modules that facilitate blacklisting, transaction filtration, or dynamic configuration updates, which were then cross-verified by human researchers for accuracy. The findings emphasize the necessity for transparency regarding emergency mechanisms on blockchains. The study calls for projects to publicly disclose the extent to which they can intervene in on-chain activities, which would enhance governance across the sector.

As cryptocurrencies continue to mature, the recommendation is clear: implementing transparent safety mechanisms is essential in fostering long-term trust with users and financial institutions. The complete study, detailing the findings of the Blockchain Freezing Exposed initiative, can be accessed via Bybit’s official channels and will undoubtedly provoke discussions surrounding governance and security within blockchain networks.

Bybit stands as the second-largest cryptocurrency exchange in the world, with a dedicated community of over 70 million users. Established in 2018, Bybit aims to redefine transparency in the decentralized landscape, fostering an inclusive environment supportive of Web3 development and innovation. With a robust emphasis on secure custody, user-friendly interfaces, and advanced blockchain tools, Bybit is committed to bridging the gap between traditional finance and decentralized finance, empowering users to explore the capabilities of the blockchain era fully.

For a more in-depth insight into Bybit's vision, you can visit their official website.