Bybit report reveals blockchain that could freeze cryptocurrencies

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Bybit’s Lazarus Lab revealed that 16 major blockchains have built-in emergency fund freezing features.

Research shows that 19 other networks could easily enable the freeze feature with a minor protocol update.

Sui, BNB Chain, and VeChain have already had millions of dollars frozen in large-scale cryptocurrency hacks.

A shocking new report by Bybit’s Lazarus Security Lab reveals something many crypto users didn’t expect: some of the world’s largest blockchains may have the power to freeze your funds.

The study found that 16 major blockchains have built-in functionality that allows for the freezing of funds, and 19 other blockchains could add such functionality with a small update.

Blockchain that could freeze cryptocurrencies

The report, titled “Exposing the Blockchain Freeze,” examined 166 blockchains using AI-powered analysis and manual code review. This reveals how certain blockchains can intervene and restrict users’ transactions under certain conditions, a move that has sparked both curiosity and debate in the cryptocurrency community.

According to the report, blockchain employs various technical techniques to enable freezing functionality.

Hardcoded freeze — It is written directly into the codebase, as seen in BNB Chain, VeChain, and XDC.
Configuration-based freezing — Managed by validators or network operators located in Aptos, Sui, and Linea.
Freezing on-chain contracts — Triggered through on-chain contract functions such as HECO.

Meanwhile, all these features are designed to help blockchain react quickly in the event of a hack or exploit, allowing stolen funds to be stopped before they can be moved or laundered.

Actual examples of fund intervention

Several past events have already shown these forces at work. After the Cetus hack, Sui froze approximately $162 million worth of stolen tokens.

BNB Chain used blacklist tools to stop $570 million from being transferred via a large-scale bridge exploit. Meanwhile, Sui froze $162 million after the Cetus hack, while Aptos also updated its own blacklist.

Additionally, VeChain froze $6.6 million in stolen assets in the breach in 2019.

Balancing security and decentralization

Freezing funds can help reduce losses, but it also raises questions about diversification and control.

David Zong, group risk management and security officer at Bybit, explained that while blockchain is built on decentralization, these mechanisms are becoming “practical safety tools” to protect users in emergencies.

He added that transparency is key to maintaining trust as the industry matures. As the crypto space matures, the report urges developers to be open about such features.