- Bybit flags 16 blockchains with built-in or configurable fund-freezing tools.
- Hoskinson says Cardano and Midnight have no freeze or blacklist mechanism.
- ADA trades near $0.55 as traders weigh governance design against security tools.
On Wednesday, November 12, Cardano CEO Charles Hoskinson drew attention to a new Bybit Lazarus Security Lab report revealing that 16 major blockchains contain code functions capable of freezing or restricting user funds.
The study, titled “Blockchain Freezing Exposed,” analyzed 166 blockchain networks using AI-assisted code reviews and manual validation to identify hidden intervention mechanisms.
Bybit’s researchers discovered that while 16 blockchains currently include direct or configurable fund-freezing capabilities, another 19 networks could enable similar features through minimal protocol adjustments. The report categorizes the freezing methods into three key types: hardcoded freezing (e.g., BNB Chain, VeChain), configuration-based freezing (e.g., Sui, Aptos), and on-chain contract freezing (e.g., HECO).
Several real-world cases highlight the application of these mechanisms. Sui froze $162 million following the Cetus exploit, Aptos introduced blacklisting features after a security breach, and BNB Chain used hardcoded restrictions to contain a $570 million bridge hack. Earlier in 2019, VeChain froze $6.6 million worth of stolen tokens.
Commenting on the findings, David Zong, Head of Group Risk Control and Security at Bybit, stated, “Blockchain was built on the principle of decentralization — yet our research shows many networks are developing pragmatic safety mechanisms to respond quickly to threats.”
Cardano Response Stresses No-Freeze Design
Hoskinson reacted sharply, reposting the findings and emphasizing that “no one can freeze your funds on Cardano or Midnight.” His response reinforces Cardano’s design philosophy centered on immutability and self-sovereignty, in contrast to the increasing institutionalization of other networks.
The report concludes by urging blockchain projects to disclose any intervention or blacklisting capabilities transparently, noting that clear governance is key to building long-term trust among users and institutions.
Cardano (ADA) Price Forecast: Can Bulls Defend $0.55 Support Zone?
Cardano (ADA) traded near $0.5517 at press time, down 3.85% in the last 12 hours, as technical momentum weakened following rejection near the $0.60 resistance level.
The 12-hour chart shows ADA sliding below its mid-Bollinger band (20-SMA) at $0.5592, signaling fading bullish momentum. The lower band sits near $0.5165, a zone that has historically acted as a stable liquidity pocket for reversals. A decisive close below $0.55 could invite a retest of this level, while sustained pressure might expose $0.50 as the next support target.
The Relative Strength Index (RSI) at 41.6 suggests mild bearish control but not yet oversold conditions, leaving room for either a short-term relief bounce or further decline.
A bullish scenario would require ADA to reclaim $0.56–$0.58 with strong volume confirmation, opening the path toward $0.6018, where the upper Bollinger band currently caps upside attempts.
Conversely, failure to hold the $0.55 pivot could accelerate losses toward $0.52 before stabilization attempts emerge. For now, ADA remains range-bound, with traders closely watching whether Hoskinson’s decentralization stance can reignite investor confidence amid market volatility.
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