BNB Chain, Aptos, Sui, and 13 other major networks contain code that allows for the blocking or restriction of user funds. This conclusion was reached by analysts from the Lazarus Security Lab division of the Bybit exchange.
Other blockchains with asset freezing capabilities include:
- Chiliz;
- VIC;
- XDC Network;
- VeChain;
- Harmony ONE;
- HVH;
- Supra;
- EOS;
- Oasis Network;
- WAX;
- Linea;
- Waves;
- HECO Chain.
This function can be swiftly activated in networks such as Arbitrum, Cosmos, Axelar, Babylon, Celestia, dYdX, Dymension, DymEVM, Evmos, Initia, Kava, Terra, Mantra, Nillion, OKB Chain, THORChain, Sei, SRCT, XION.
Analysts examined a total of 166 blockchains. Their research identified three categories of intervention:
- Hardcoded functions — first used in 2019 by VeChain developers after a $6.6 million hack. The VeChain Foundation prohibited blacklisted addresses from signing transactions. A similar method was employed by the BNB Chain team.
- Validator or foundation settings — also involves blocking certain addresses, but only by validators, foundations, or developers.
- System contracts — managing a blacklist through a smart contract in the blockchain. This approach is used solely by the HECO network. It allows immediate changes to the blacklist, which take effect across the ecosystem as validators constantly check the current state of the contract when processing transactions.
Specialists cited several instances of these mechanisms in action. One such case was the hack of the decentralized exchange Cetus on Sui, involving approximately $220 million. The network swiftly froze $162 million, which was later returned to the platform’s liquidity pool.
“Blockchain was built on the principles of decentralization, but our research shows that many networks are developing pragmatic security mechanisms for rapid threat response,” noted Bybit’s Head of Risk Management, David Zung.
Experts urged projects to adhere to transparency principles and disclose all information regarding emergency intervention capabilities.
Community Reaction
Users were outraged by the news that blockchains could freeze their funds.
Bybit just confirmed 16 coins can literally freeze your funds.
3 types of “freezing”:
— Hardcoded in protocol (like $BNB)
— Validator / Foundation control (like $SUI, $APT)
— On-chain contract execution (like HECO)Everyone screams “decentralization,”
but most don’t realize how… pic.twitter.com/LtTfAWMuo2— Ji-hoon 지 (@0xJiHoon) November 12, 2025
“Everyone screams ‘decentralization,’ but few understand how few blockchains truly adhere to it. If someone else can freeze your money, it’s not your money,” wrote one user.
Some community members called the built-in fund freezing function “Web2 in a new shiny wrapper,” while others deemed it a “serious red flag undermining fundamental trust in DeFi.”
“You expect decentralization, but you get a smart contract with parental controls and a ‘freeze all’ button in the code,” noted another user.
Meanwhile, the ACY Securities team described Bybit’s wording as “scare tactics.” According to them, the “hidden code” is a publicly verifiable governance feature necessary for major updates, “not a sinister plot to steal funds.”
Back in May, independent developers announced the launch of a “neutral rollup” Ethereum R1 without its own token and centralized control.