Bybit Exposes Blockchain Asset-Freezing Mechanisms: A Challenge to Decentralization

A recent report by Bybit's security division has uncovered that at least 16 major blockchains have built-in capabilities to freeze user assets, stirring debate among decentralization advocates. The study highlights networks like BNB Chain, VeChain, and XDC, which implement hardcoded freezing protocols, while others such as Aptos and Sui rely on validator-controlled mechanisms. These findings present both a challenge to the ethos of decentralization and a potential boon for institutional adoption, offering enhanced security measures. As the crypto industry evolves, the balance between security and decentralization remains a critical discussion point.

Bybit Report Reveals Blockchains With Fund-Freezing Capabilities

A new study by Bybit's security division exposes a little-known reality: at least 16 major blockchains possess inherent mechanisms to freeze user assets. The findings challenge decentralization purists while offering pragmatic security solutions for institutional adoption.

BNB Chain, VeChain, and XDC implement hardcoded freezing protocols within their base layers. Networks like Aptos and Sui employ validator-controlled configurations, while HECO utilizes smart contract triggers. These features emerged as critical defenses during high-profile exploits like the Cetus hack.

The revelation sparks existential debates—can truly decentralized networks exist when emergency interventions are possible? Yet the market appears unfazed, with trading volumes holding steady across tagged chains. This paradox underscores crypto's evolution toward hybrid models balancing autonomy with investor protections.

Bybit's Lazarus Lab Exposes Fund-Freezing Mechanisms Across 16 Blockchains

Bybit's Lazarus Security Lab has uncovered built-in fund-freezing capabilities in 16 blockchain networks, with another 19 capable of implementing similar functions through minor protocol changes. The findings challenge Core crypto principles of decentralization and censorship resistance.

The research identifies three primary freezing systems: hardcoded logic embedded in blockchain software (used by networks like BNB Chain and VeChain), configuration file controls, and on-chain contract execution methods. Many of these features were implemented reactively following major hacks to freeze stolen funds.

This revelation sparks fresh debate about the tension between security and decentralization in blockchain ecosystems. Industry observers emphasize the need for transparent governance around such powerful controls to prevent centralized abuse.