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Wednesday Nov 12 2025 14:10
2 min
Bybit's Lazarus Security Lab has identified 16 blockchain networks that possess the technical capability to freeze or restrict user funds. This report uncovers the various freezing mechanisms present at the protocol level, as well as the potential risks associated with censorship and centralized control in blockchain systems.
Bybit's Lazarus Security Lab found three distinct mechanisms for freezing funds at the protocol level:
The report indicates that networks like BNB Chain, VeChain, Chiliz, Viction, and XDC Network have hardcoded freezing functionalities. Other networks, such as Aptos, Eos, and Sui, utilize configuration file-based freezing. Heco Chain is the only blockchain to manage a blacklist through an onchain smart contract.
The presence of these freezing mechanisms, even when intended to prevent theft or hacks, raises significant concerns about censorship and centralized control in blockchain systems. This adds to the growing debate about whether "decentralized" networks remain so in practice, as more projects integrate emergency controls, compliance modules, and admin-level privileges that blur the line between security and centralization.
This report highlights the need for increased scrutiny of blockchain protocols and their potential implications for decentralization. Users and investors should be aware of the underlying technical capabilities of the networks they utilize and understand the potential risks associated with fund freezing and censorship.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
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