In a recent report released by Bybit”s Lazarus Security Lab, concerns surrounding the decentralization of blockchain networks have been raised. The analysis highlighted that out of 166 blockchain networks evaluated, 16 possess built-in mechanisms to freeze funds, while an additional 19 could implement such capabilities with minor protocol modifications.
The report detailed various freezing mechanisms, including hardcoded logic found in the BNB Chain and VeChain, as well as configuration file controls utilized by blockchains like Aptos and Sui. These controls are often governed by validator or foundation settings, leading to questions about the true decentralization of these networks.
Security incidents have predominantly driven the implementation of fund freezing features. For instance, the Sui blockchain froze approximately $162 million in stolen assets following the Cestus hack in May 2025, which resulted in total losses estimated at $223 million. In response to this incident, Aptos introduced support for TransactionFilter, a feature designed to enhance transaction security.
Additionally, the report shed light on the BNB Chain, which utilized hardcoded blacklists to freeze funds related to a significant $570 million bridge security breach in October 2022. Similarly, VeChain was involved in freezing funds from a $6.6 million security incident in 2019 involving VET tokens.
Interestingly, the modular account design of Cosmos may facilitate future fund-freezing interventions, according to the findings. These mechanisms serve as emergency tools aimed at protecting users and mitigating damage during large-scale security breaches.
Bybit emphasizes the importance of transparency regarding emergency intervention mechanisms. The Lazarus Security Lab developed an AI-assisted detection framework to conduct its review, ensuring that each case was validated by human researchers for accuracy. The lab advocates for blockchain projects to publicly disclose whether and how they can intervene in on-chain activities, promoting a more transparent governance framework.
David Zong, Head of Group Risk Control and Security at Bybit, stated, “Blockchain was built on the principle of decentralization – yet our research shows that many networks are developing pragmatic safety mechanisms to respond quickly to threats. At Bybit, we believe transparency builds trust.”
Through this report, Bybit aims to foster open dialogue about safety mechanisms that could enhance trust among users and institutions as the cryptocurrency industry continues to evolve.
