Cardano No-Freeze Architecture Stands Out As Bybit Flags 16 Blockchains That Can Freeze User Funds
A new report by Bybit's Lazarus Security Lab reveals that 16 major blockchains possess fund-freezing mechanisms, categorized as hardcoded, configuration-based, or on-chain contract freezing. Charles Hoskinson, CEO of Cardano, emphasized Cardano and Midnight's no-freeze design, focusing on decentralization and immutability. The report calls for transparency in disclosing intervention mechanisms to build user trust. Separately, Cardano's ADA price faced bearish momentum, trading around $0.5517 with potential further losses if key support levels are breached.
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Bybit Report Exposes Freezing Mechanisms in Blockchains
On Wednesday, November 12, 2025, Cardano CEO Charles Hoskinson highlighted a new Bybit Lazarus Security Lab report. This report, titled “Blockchain Freezing Exposed”, revealed that 16 major blockchains have code functions capable of freezing or restricting user funds. The study, which analyzed 166 blockchain networks using AI-assisted code reviews and manual validation, aimed to uncover hidden intervention mechanisms. Hoskinson reminded users via Twitter: “No one can freeze your funds on Cardano or Midnight.”
Types of Freezing Mechanisms and Real-World Examples
Bybit’s researchers categorized fund-freezing mechanisms into three key types:
- Hardcoded freezing (e.g., BNB Chain, VeChain)
- Configuration-based freezing (e.g., Sui, Aptos)
- On-chain contract freezing (e.g., HECO)
Several real-world cases illustrate the application of these mechanisms:
- Sui froze $162 million after the Cetus exploit.
- Aptos introduced blacklisting features following a security breach.
- BNB Chain imposed hardcoded restrictions during a $570 million bridge hack.
- In 2019, VeChain froze $6.6 million worth of stolen tokens.
Bybit’s Perspective on Decentralization and Safety
David Zong, Head of Group Risk Control and Security at Bybit, commented on the findings:
“Blockchain was built on the principle of decentralization — yet our research shows many networks are developing pragmatic safety mechanisms to respond quickly to threats.”
The report emphasizes the need for transparent disclosure of intervention or blacklisting capabilities. It argues that clear governance is critical for building long-term trust among users and institutions.
Cardano's Stance on Fund Immutability
Charles Hoskinson responded to the report by reiterating Cardano’s design philosophy, stating: “No one can freeze your funds on Cardano or Midnight.”
This underscores Cardano’s commitment to immutability and self-sovereignty, in contrast to the increasing institutional controls being adopted in other blockchain networks.
Cardano Price Analysis: Technical Overview
Cardano (ADA) traded near $0.5517, down 3.85% in the last 12 hours as bullish momentum faltered near the $0.60 resistance level. The 12-hour chart revealed:
- ADA sliding below its mid-Bollinger band ($0.5592), signaling weakening bullish momentum.
- The lower Bollinger band, sitting near $0.5165, remains a key level for potential reversals.
The Relative Strength Index (RSI) stood at 41.6, indicating mild bearish conditions yet avoiding oversold territory. A bullish scenario would need ADA to reclaim $0.56–$0.58 with strong volume, potentially pushing toward $0.6018. Conversely, failure to hold $0.55 may expose ADA to further losses, targeting $0.52 before seeing stabilization attempts.
Conclusion and Market Implications
The report concludes by urging blockchain projects to ensure transparent governance and disclosure of intervention mechanisms. While Cardano maintains its no-freeze design, its decentralization philosophy will be tested as market dynamics evolve.
Meanwhile, ADA remains range-bound, with traders watching whether its commitment to decentralization can reignite investor confidence amidst ongoing volatility.
Disclaimer
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