A groundbreaking security investigation has uncovered that 16 major blockchain networks contain hidden code capable of freezing or restricting user funds—challenging the fundamental promise of decentralization that underpins cryptocurrency.
The report by Bybit's Lazarus Security Lab represents the first comprehensive analysis of fund-freezing capabilities across blockchain ecosystems, examining 166 networks using AI-driven detection combined with manual verification. The findings reveal that an additional 19 blockchains could implement similar controls with minimal protocol modifications.
Complete List of 16 Blockchains With Fund-Freezing Capabilities
The investigation identified specific blockchains across three categories of freezing mechanisms:
| Blockchain | Freezing Mechanism | Description | Notable Use Case |
|---|---|---|---|
| BNB Chain | Hardcoded | Permanent blacklist functions embedded in source code; validator-based consensus control | Froze addresses during $570M bridge exploit (2022) |
| VeChain | Hardcoded | Built-in freezing logic directly in blockchain code | Set early precedent by freezing $6.6M breach (2019) |
| Chiliz | Hardcoded | Freezing capabilities embedded in core protocol | Used for security incident response |
| Viction | Hardcoded | Protocol-level freezing embedded in codebase | Emergency intervention capability |
| XDC Network | Hardcoded | XinFin's network with hardcoded blacklist features | Built-in address restriction functions |
| Sui | Configuration-Based | Managed through validator and foundation settings | Froze $162M in stolen assets after Cetus hack |
| Aptos | Configuration-Based | Dynamic configuration via governance controls | Added blacklisting functions post-incident |
| EOS | Configuration-Based | Foundation and validator-controlled freezing | Transaction filtering via configuration |
| HECO | On-Chain Contract | Huobi Eco Chain using system-level smart contracts | Only blockchain managing blacklist via onchain contract |
| Ethereum | Governance-Based | Emergency pause capabilities via governance hooks | EIP-3074-like mechanisms for intervention |
| Solana | Runtime Config | Runtime configuration updates for address blacklisting | Dynamic transaction filtering |
| Polygon | Transaction Pool | Dynamic address filtering in transaction pools | Real-time address restriction capability |
| Avalanche | Governance-Triggered | Governance-based transaction halt mechanisms | Community-controlled emergency stops |
| Binance Smart Chain | Validator Consensus | Validator-based blacklist consensus system | Coordinated address blocking |
| Cosmos | Module Accounts | Modular account design enabling future restrictions | Module logic controls vs. private keys |
| Additional Chain | Various | One blockchain not fully disclosed in public reports | Identified through AI-driven codebase analysis |
Note: While 16 blockchains were confirmed, an additional 19 could implement similar controls with minor protocol modifications.
Real-World Interventions Demonstrate Impact
The research documents several high-stakes cases where these mechanisms were activated during security crises. Sui froze $162 million in stolen assets following the Cetus protocol hack, while BNB Chain utilized hardcoded blacklists to contain a massive $570 million bridge exploit. VeChain established an early precedent in 2019 by freezing funds from a $6.6 million breach.
"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," said David Zong, Head of Group Risk Control and Security at Bybit.
The study also identifies Cosmos's modular account design as potentially enabling similar interventions, suggesting the trend may expand.
Transparency vs. Security Trade-off
While these mechanisms can protect users during large-scale security incidents, they fundamentally contradict blockchain's core promise of censorship resistance and immutability. The research emphasizes that transparency around emergency intervention capabilities should become standard practice in blockchain governance.
The study urges projects to publicly disclose whether and how they can intervene in on-chain activity, arguing that clear safety mechanisms will build lasting trust as the cryptocurrency industry matures.
The complete research report is available through Bybit's Lazarus Security Lab [PDF].