Blockchain freezing revealed: Bybit flags 16 chains with fund controls

A new study from Bybit has reignited debate. Its Lazarus Security Lab’s report, “Blockchain Freezing Exposed”, says 16 major networks embed code to stop or blacklist funds, revealing how safety overrides can curb exploits while testing decentralization.

How does blockchain freezing work across networks?

The team analyzed 166 blockchains using AI and manual code review to find blacklist and pause modules.

Out of those, 16 currently have freezing functions built in, and another 19 could activate them with only minor updates. According to the Bybit’s Lazarus Security Lab report, each result was verified before classification.

The study groups fund freezing mechanisms into three categories. Hardcoded freezing lives in protocol logic, as on BNB Chain and VeChain, offering hardcoded freezing examples.

Configuration-based controls let validators or foundations pause or restrict accounts, as used by Sui and Aptos. Lastly, on-chain contract freezing uses smart contracts to block funds or wallets, seen on HECO. However, naming varies across ecosystems.

Which real-world cases illustrate these fund freezing mechanisms?

In 2022, BNB Chain used hardcoded blacklists to contain a bridge exploit valued at $570 million. Validators coordinated to halt attackers’ movement of freshly minted BNB, buying time for patches.

Forensic summaries, including an analysis of the 2022 BSC Token Hub exploit, detail how the pause limited contagion. However, such intervention tests decentralization norms.

Earlier, in 2019, VeChain froze $6.6 million in stolen tokens after a major breach. Moreover, the action prevented laundering across exchanges while teams coordinated their response.

More recently, Sui validators froze $162 million tied to the Cetus hack, and Aptos added blacklisting tools soon after. That said, validator pause mechanisms can swiftly contain threats. See Sui validators froze $162 million for timeline details.

What does this mean for emergency chain governance?

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. However, open disclosure can help users judge trade-offs.

The report’s AI-assisted framework scanned codebases for chain blacklist functions, transaction filtering, and configuration updates. Each match was manually verified.

Moreover, the authors argue that clear documentation of these tools should become a core element of emergency chain governance.

In short, blockchain freezing exists across several major networks, often as an emergency brake. Used judiciously and disclosed upfront, it can reduce exploit fallout without eroding decentralization, provided governance and transparency standards keep pace.