Security researchers at Bybit’s Lazarus Security Lab have revealed that 16 prominent blockchain networks, including Ethereum, Solana, BNB Chain and Polygon, include pre-programmed code allowing developers or governance bodies to freeze or restrict user funds. An additional 19 chains were identified as capable of enabling similar features with minimal protocol changes.
The disclosure has reignited longstanding debates over decentralization, user sovereignty and the true autonomy of public ledgers. While the freezing feature is often justified as fraud prevention or regulatory compliance, critics argue it undermines trustless system ideals and adds another layer of governance risk.
Market watchers say the findings carry regulatory implications, as authorities increasingly scrutinize how blockchain protocols balance censorship resistance, user protection and asset control. The report may influence institutional strategies and due diligence around custody, chain choice and protocol participation.