A new study from Bybit’s Lazarus Security Lab has unveiled a little-known truth about the inner workings of many popular blockchains: some of them have built-in tools that can freeze or block your funds. The report, titled Blockchain Freezing Exposed , found that these mechanisms, designed to combat theft, also raise concerns over who holds the real power in supposedly decentralised ecosystems. Researchers examined 166 blockchain networks and discovered that 16 already support fund-freezing functions, while another 19 could introduce the feature with minor adjustments. While intended as emergency tools, these features operate quietly in the background, often without user awareness. How blockchains can freeze your funds The report found three main ways that blockchains can restrict transactions or lock wallets. Some networks embed hardcoded freezing directly into their software. In these systems, the ability to stop fund movement is part of the core protocol, as seen in BNB Chain, VeChain, and XDC. Other blockchains use configuration-based freezing, which gives control to validators or network operators. These permissions allow selected groups to activate freezes based on governance rules or risk alerts. Aptos, Sui, and Linea follow this model. The third method is on-chain contract freezing, where smart contracts include freeze functions that can be triggered on demand. This technique is used in HECO, offering real-time intervention within decentralised finance (DeFi) structures. These different methods show that freezing is not just a one-size-fits-all feature. Instead, it is baked into blockchain governance in multiple ways that can be difficult for users to detect unless disclosed. Fund intervention cases already happening Several incidents referenced in the study highlight how blockchains have already used these powers. After the Cetus protocol was hacked, the Sui blockchain intervened by freezing $162 million worth of tokens. This action prevented the attacker from moving the funds while the issue was being investigated. BNB Chain, one of the largest smart contract platforms, acted swiftly during a $570 million exploit involving one of its cross-chain bridges. By blacklisting the affected addresses, it effectively stopped the hacker from accessing the majority of the stolen assets. VeChain exercised its freezing ability back in 2019 after $6.6 million in tokens were stolen. The network froze the assets, showcasing that these controls have been active for years, even if they were not widely known. Following these cases, Aptos also adopted a blacklisting mechanism to provide a faster response in case of future incidents. Balancing user safety and decentralised principles While these freezing capabilities have helped recover or block stolen assets, their existence brings to light a key issue in blockchain governance: control. Many users enter the crypto space under the belief that blockchains are immutable and censorship-resistant. However, these tools demonstrate that some level of control, whether centralised or decentralised, is built into the infrastructure. The report notes that as more blockchains adopt such features, the need for transparency becomes critical. Without it, users could remain unaware of the true risks or trust assumptions embedded within the networks they use. As developers continue to innovate in blockchain security, the study suggests they must also prioritise clear communication with the community to maintain trust and uphold the principles that made crypto attractive in the first place. The post Bybit study shows how major blockchains quietly control your crypto appeared first on Invezz
