Sixteen major blockchains, including BNB Chain, VeChain, Sui, Aptos, and HECO, have built-in mechanisms to freeze or restrict user funds during hacks or security breaches. These controls, analyzed by Bybit’s Lazarus Security Lab, help mitigate losses but raise transparency concerns in decentralized networks.
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Hardcoded freezing embeds controls directly into the blockchain code, as in BNB Chain and VeChain, allowing immediate response to threats.
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Setting-based freezing uses validators or network configurations, seen in Sui and Aptos, for flexible security adjustments.
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On-chain contract freezing relies on system contracts, like in HECO, with 16 networks overall featuring these mechanisms according to the report.
Discover how 16 blockchains can freeze funds during hacks—explore mechanisms, real cases like Sui’s $223M breach, and transparency needs for DeFi security. Stay informed on blockchain risks today.
What Are Blockchain Freezing Mechanisms?
Blockchain freezing mechanisms are security features built into certain networks that allow temporary halting or restriction of funds and transactions during hacks or breaches. These tools, identified in Bybit’s Lazarus Security Lab report titled “Blockchain Freezing Exposed,” enable rapid damage control while preserving the integrity of the ecosystem. By analyzing 166 blockchains using AI and manual methods, researchers found that 16 major ones possess these capabilities, balancing decentralization with practical safeguards.
How Do Different Types of Freezing Controls Work in Blockchains?
Blockchain freezing mechanisms fall into three primary categories, each offering distinct approaches to enhancing security. Hardcoded freezing integrates controls directly into the protocol’s core code, making it a permanent fixture for swift activation—examples include BNB Chain, where a 2022 exploit led to halting operations and blacklisting attacker wallets, and VeChain, designed with inherent safeguards against unauthorized movements. Setting-based freezing, on the other hand, leverages validator consensus or adjustable network settings for more dynamic responses; Sui and Aptos exemplify this, with Sui validators freezing $162 million in a 2025 hack on the Cetus exchange, recovering funds via a 90% approval vote into a multisig wallet. On-chain contract freezing operates through smart contracts embedded in the chain, such as in HECO, allowing programmable restrictions without altering the base code. These methods, as detailed in the Bybit report, demonstrate evolving strategies to counter rising DeFi threats, with data showing over $900 million in losses from major incidents prompting their adoption. Expert analysis from the lab stresses that while effective, these controls must evolve with governance models to avoid centralization risks.
Frequently Asked Questions
Which Blockchains Have Built-In Fund Freezing Capabilities?
Sixteen prominent blockchains, including BNB Chain, VeChain, Sui, Aptos, and HECO, feature fund freezing mechanisms as per Bybit’s Lazarus Security Lab analysis. These networks analyzed 166 chains to identify hardcoded, setting-based, and on-chain controls that activate during security events, helping prevent further exploitation in real-time scenarios.
Why Is Transparency Important in Blockchain Freezing During DeFi Hacks?
Transparency in blockchain freezing builds user trust by ensuring clear governance over security actions, especially as DeFi faces frequent attacks like the 2025 Balancer breach stealing $129 million across Ethereum, Base, and Berachain. David Zong from Bybit notes that open disclosure of these mechanisms fosters accountability, allowing communities to verify responses and maintain the decentralized ethos while protecting assets.
Key Takeaways
- Security Through Freezing: 16 blockchains use varied mechanisms to freeze funds, reducing hack damages as seen in Sui’s $223 million Cetus incident.
- Types of Controls: From hardcoded in BNB Chain to on-chain in HECO, these tools provide flexible threat mitigation without full centralization.
- Need for Transparency: Reports like Bybit’s emphasize clear communication of freezing powers to sustain DeFi trust amid rising cyberattacks.
Conclusion
As blockchain freezing mechanisms gain prominence in securing networks like Sui, Aptos, and BNB Chain against sophisticated hacks, their role in DeFi protection becomes undeniable. Bybit’s Lazarus Security Lab report highlights the balance between rapid response tools and the demand for transparent governance, underscoring how these features can safeguard user funds in an increasingly volatile landscape. Looking ahead, blockchain developers and communities must prioritize ethical implementations to bolster confidence in decentralized finance—explore these evolving safeguards to make informed decisions in your crypto journey.
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