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Beware! These 16 Blockchains Can Freeze Your Funds Anytime
Several blockchains like BNB, Cosmos, SUI, etc., have the ability to freeze funds, which contradicts the principles of decentralization.
- Several blockchains have the ability to freeze funds, which contradicts the principles of decentralization.
- The list below includes chains with confirmed freezing ability.
- These chains either have hardcoded freezing functions built into their code, utilize configuration file settings, or employ smart contract functions to freeze user funds.
- Top chains include names like Sui, Linea, Kava, Mantra, Cosmos, Terra, and BNB Chain.
List of Blockchains That Can Freeze Funds
Bankless co-founder Ryan Sean Adams, famous for advocating Ethereum’s Triple Point Asset during its bear phase, has brought a list of chains that either have the confirmed ability to freeze individual addresses and funds or are suspected to do so.
We have used the tweet as a primary source for the information in this article.
The list includes top chains like BNB Chain, SUI, Harmony (ONE), and Cosmos (ATOM).
We have categorized these chains based on how they can freeze user addresses. Please note that the information might differ as we continue to investigate these chains one by one.
Freezing Ability Hardcoded into Blockchains
These chains have freezing ability hardcoded into their source code.
- Chiliz (CHZ)
- Viction (VIC)
- XDC Network (XDC)
- BNB Chain (BNB)
- VeChain (VET)
Freezing Ability in Configuration File/Settings
These chains can modify the settings in their configuration file to enable freezing user addresses. However, they need to restart their nodes to bring the ability into effect.
- Harmony One (ONE)
- Havah (HVH)
- Aptos (APT)
- Supra (SUPRA)
- EOS (EOS)
- Oasis (ROSE)
- WAX (WAXP)
- Sui (SUI)
- Linea (LINEA) by Consensys (MetaMask)
- Waves (WAVES)
Freezing Ability in Smart Contracts
The blockchain below can freeze user addresses by invoking a smart contract mechanism. Smart contracts do have the ability to freeze and erase user addresses, like we have seen in PayPal’s PYUSD stablecoin’s smart contract.
- HECO Chain (HECO)
Why Do They Oppose The Core Principle of Decentralization?
The crypto markets have surged to over $3.5 trillion in the last decade, and several centralized entities do not want to miss the rally. These entities, under the guise of blockchains, aim to capitalize on the crypto market rallies, which have outperformed stock markets by several thousand percent.
Desire to Control
Blockchain governance controls all the funds inside its chain. If the governance freezes the funds of the users, they can easily stop people from exiting the chain, prevent a bank run in case of any scandal, etc.
Bowing to Regulations
Several chains like BNB, whose parent company Binance had to pay a whopping $4.3 billion fine, chose to bow before the governments of their major markets or home country to avoid litigation.
Diversion of User Funds
Das Crypto publishes information for knowledge. Please consult your financial advisor before trading or making any investment decisions. Cryptocurrencies are subject to uncertainties and market volatility.
