Cardano News: No One Can Freeze Your Funds on Cardano and Midnight, Charles Hoskinson - The Market Periodical

Key Insights

• Charles Hoskinson is leading the Cardano news trend after confirming no one can freeze funds on Cardano or its privacy sidechain, Midnight.
• Bybit report shows 16 blockchains can freeze assets, emphasizing user control and transparency.
• Privacy coins like Midnight and Zcash gain momentum, offering secure, compliant blockchain solutions.

In a recent Cardano news update, Charles Hoskinson states that the protocol and its privacy sidechain, Midnight, cannot freeze user funds.

A Bybit report shows that some blockchains can freeze assets during hacks. Experts warn of quantum risks, while privacy coins like Zcash gain market attention.

Cardano News: Charles Hoskinson on Asset-Freezing in Blockchains

According to Cardano News, Charles Hoskinson, the founder of Input Output Global and creator of Cardano, confirms that no one can freeze funds on Midnight.

His remarks follow a Bybit report that found 16 blockchains with code that can freeze or block funds in emergencies. Another 19 chains could add the feature with minor protocol changes.

It is worth noting that the Bybit report examined 166 blockchains, utilizing a combination of automated code scanning and manual verification.

The report identified three freezing methods: hardcoded in the blockchain, controlled through validator or foundation settings, and on-chain contract freezing.

Some notable examples include Sui freezing $162 million after a hack, BNB Chain containing a $570 million bridge exploit, and VeChain freezing $6.6 million in 2019.

In response to this, Hoskinson insinuated that Cardano and Midnight deliberately avoid these mechanisms.

Midnight, launched in October 2023, is a privacy-focused sidechain built on Cardano.

It utilizes the Minotaur consensus system, which combines proof-of-work and proof-of-stake mechanisms to process transactions.

Its Kachina Virtual Machine ensures GDPR compliance, providing users with privacy while enabling enterprises to audit transactions.

The report also emphasizes the importance of transparency regarding freezing functions. Users should be aware of whether a blockchain can intervene in the event of a network breach.

The Cardano News noted that Hoskinson emphasizes user control, making the chain and Midnight different from other blockchains that rely on emergency freezes.

Quantum Computing Could Threaten Some Coins

Charles Guillemet, CTO of Ledger, warns that quantum computers could pose a risk to cryptocurrencies.

These computers might calculate private keys from public keys, which could make coins vulnerable.

On Bitcoin, public keys are exposed when funds are spent, creating a potential window for attacks.

Guillemet explained that protections like SegWit would not fully prevent losses if a sufficiently powerful quantum computer were to appear.

Many coins, including some of Satoshi’s holdings, already have public keys visible on-chain.

He recommended upgrading protocols to be quantum-resistant and planning ways to protect or recover coins.

While this threat may seem distant, experts say that early preparation can help protect trust in blockchain networks.

Trust is vital for adoption and value, and Cardano News highlights that networks without emergency freezing functions must balance user security with decentralization.

Midnight and Zcash Lead in Privacy and Safety

Privacy protocols like Midnight and Zcash are gaining attention for safer transactions. Zcash utilizes zero-knowledge proofs to ensure the verifiability of private transactions.

Midnight combines privacy features with business compliance, making it appealing to institutions.

The market shows growing interest in these coins. Zcash has risen 150% in 2025, marking one of its strongest yearly performances since 2017.

Exchanges like Kraken plan to list Midnight’s NIGHT token, signaling confidence from market makers.

New regulations, including the U.S. Clarity Act and Genius Act, may encourage adoption of privacy-focused blockchains with functional modifications.

Cardano News shows how Hoskinson’s comments underline the importance of user control.

Unlike other blockchains, Cardano and Midnight do not freeze assets during security events.

Privacy coins may play a bigger role for both individuals and businesses seeking security, privacy, and compliance.

Essentially, this Cardano news suggests that privacy-focused chains like Midnight may gain wider adoption as regulators and businesses seek secure, compliant blockchain solutions.