Bybit Report Identifies Fund Freezing Codes in 16 Blockchains

Bybit's Lazarus Security Lab released a report revealing that 16 major blockchains have code allowing them to freeze or restrict user funds. This mechanism is presented as a protective measure during security breaches but contradicts the decentralization principle of blockchain.

Key Findings

16 blockchains can freeze funds, while another 19 may adopt similar features with minor protocol changes.
Freezing mechanisms include hardcoded methods, configuration-based through validator settings, and on-chain contract freezing.
Examples: BNB Chain and VeChain use hardcoded freezing; Sui blockchain employed configuration-based freezing post-Cetus hack.

Bybit emphasizes the need for transparency in emergency intervention within blockchain governance, aligning with their belief that transparency builds trust.