Hidden freeze controls uncovered across major blockchains

Analysts warn freeze tools may centralise power without strong governance.

Bybit researchers flagged 16 blockchains with built-in fund-freezing features after code reviews.

Bybit’s Lazarus Security Lab says 16 major blockchains embed fund-freezing mechanisms. An additional 19 could adopt them with modest protocol changes, according to the study. The review covered 166 networks using an AI-assisted scan plus manual validation.

Whilst using AI, researchers describe three models: hardcoded blacklists, configuration-based freezes, and on-chain system contracts. Examples cited include BNB Chain, Aptos, Sui, VeChain and HECO in different roles. Analysts argue that emergency tools can curb exploits yet concentrate control.

Case studies show freezes after high-profile attacks and losses. Sui validators moved to restore about 162 million dollars post-Cetus hack, while BNB Chain halted movement after a 570 million bridge exploit. VeChain blocked 6.6 million in 2019.

New blockchain debates centre on transparency, governance and user rights when freezes occur. Critics warn about centralisation risks and opaque validator decisions, while exchanges urge disclosure of intervention powers.

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