Bybit Report Exposes Hidden Fund-Freezing Mechanisms in 16 Major Blockchains

Bybit’s Lazarus Security Lab revealed that 16 major blockchains contain hidden functions
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Bybit’s Lazarus Security Lab revealed this week that 16 major blockchains, including Ethereum, BNB Chain, and Avalanche, contain hidden functions that could allow developers or authorities to freeze user funds without prior notice. The findings were published in a new security report shared by the exchange.

According to the report, these embedded “freezing” mechanisms are often integrated into smart contract governance frameworks or validator systems. While originally designed to enhance security and regulatory compliance, they may also pose potential risks to user autonomy and decentralization. Networks like Polygon, Solana, and TRON were also identified as having varying levels of fund-freezing functionality, often dependent on multisignature control or validator consensus.

Bybit emphasized that greater transparency and public auditing are essential to ensure user protection and maintain blockchain integrity. The exchange’s research team plans to release further technical analyses to encourage open dialogue within the crypto community about the balance between security and control.

Source: WuBlockchain on X


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