16 blockchains could freeze your funds! Bybit report.

Sixteen major blockchains currently have the ability to freeze user funds, challenging the notion of censorship resistance in cryptocurrencies. This was revealed in research by Bybit's Lazarus Security Lab, which analyzed 166 blockchain networks and found that another 19 could enable similar features with minor code changes.

These freeze capabilities essentially allow blockchain foundations and validators to control user assets, similar to traditional banking systems. Traders may face unsettling realities, as these powers contradict the promise of cryptocurrency decentralization.

Bybit has identified three methods of freezing:

1. Hard freeze, where the list is directly embedded in the blockchain code (e.g., BNB Chain, VeChain).

2. Configuration-based freeze, managed by the validator's private settings (e.g., Sui, Aptos).

3. Smart contract-based freezing, used exclusively by Huobi ECO Chain.

Each of these methods allows for the blocking of destination addresses in transactions, locking funds until restrictions are lifted.

The study also documented freezing incidents, such as the $162 million Sui freezing following a DEX hack and BNB Chain's response to a $570 million attack. The findings raise concerns about trust among traders and highlight the tensions between security and decentralization in the cryptocurrency space. As regulatory scrutiny increases, more networks may adopt similar freezing mechanisms.

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