Key Takeaways:
- VeChain denies Bybit’s claims of a hidden fund freeze.
- The community approved the 2019 blocklist as a one-time, transparent measure.
- Independent audits confirm VeChainThor supports decentralized governance, not centralized control.
VeChain Denies Bybit’s ‘Hidden Freeze’ Allegations
VeChain has strongly denied recent claims from Bybit’s Lazarus Security Lab suggesting the blockchain contains a hidden mechanism to freeze user funds. The report, which labeled VeChain among networks with “hardcoded freezing” capabilities, sparked concerns in the crypto community.
In an official statement, VeChain called the report “factually incorrect and reputationally damaging,” clarifying that the alleged freeze was a transparent, community-approved response to a past security incident.
2019 Blocklist: A One-Time, Governance-Driven Measure
VeChain explained that the only instance resembling a fund freeze occurred in December 2019, after a private key theft affected a single wallet. In response, the VeChain community voted to implement a one-time blocklist, allowing validators to reject transactions originating from the compromised wallet.
The blockchain’s protocol itself contains no hardcoded freeze function. Validators, guided by community governance, prevented the stolen assets from being moved, controlling and transparently mitigating the breach. VeChain emphasized the distinction between “blocking” transactions at the validator level and “freezing” funds at the protocol level—something Bybit’s report conflated.
Also Read: How to Bridge Assets Between Blockchains
Independent Audits Confirm Decentralized Governance
VeChain cited independent audits by NCC Group, Coinspect, and Hacken, confirming that VeChainThor’s software enables validators to reject certain transactions through community-approved governance. These measures support decentralized decision-making rather than centralized control.
Also Read: What Is a Layer 1 Blockchain?
Bybit’s report, which analyzed 166 blockchains, categorized freezing mechanisms as hardcoded, configuration-based, or on-chain contract freezes. While historical examples like Sui’s $162 million asset freeze and BNB Chain’s $570 million bridge exploit exist, VeChain clarified its measures are distinct, transparent, and aligned with decentralized principles.
Transparency Over Centralization
VeChain’s clarification reinforces its commitment to decentralized governance and security transparency. The 2019 blocklist was a specific, one-off response—not a hidden kill switch. Users can be assured that VeChain’s protocol does not enable unilateral fund freezes, reaffirming trust in the network’s decentralized integrity.
