Exclusive: Another 27 EOS Accounts Frozen: The Good, The Bad, And The Ugly

Soon after the arbitration process in EOS closed down 7 accounts, it once again ordered block producers to stop processing transactions from another 27.

Concerns about EOS’ centralized nature are starting to boil into something much larger as 27 more accounts were frozen as part of an order to block producers.

“It is hereby ordered that the EOS Block Producers refuse to process transactions for the following accounts and keys indefinitely,” the order read.

This particular order was given right after another one that ordered block producers to freeze seven accounts that were reportedly compromised.

One of the accounts, according to Chainrift—a block producer candidate—was just recently bought by an individual in a “provable good faith transaction” before it was indefinitely frozen.

A person with the username Sandwich who’s an administrator of the EOS community on Telegram, insisted that the situation is temporary and that this form of arbitration is still a work in progress.

He also said that the “arbitration process is in development. This was a unique situation.” Although no reason was provided in the order, Sandwich said that the freezing of these accounts was in relation to a scam.

“Look, I wrote the script that created the decentralized snapshot. I’ve investigated nearly 100 different cases in order to create the most fair and accurate snapshot possible. I was aware of this scam, but there was nothing that could be done at the moment to handle it in an objective way. Arbitration post-freeze was the only option. If you map those account names to their Ethereum addresses, you will see a common transaction among all of them to a contract that is used as a proof,” he said.

On the other hand, when asked whether ECAF needs to be transparent about emergency freezes, Alon Shvartsman—a representative of the LiquidEOS block producer, suggested that the arbitration process could indeed have been better.

“Yes, we believe in transparency. It’s important for the community to know that there are mechanisms in place to protect and secure from malicious actors. Transparency between ECAF, BPs, and the community is crucial for the integrity of the network,” he said.

This story is more complex than it is given credit for. On the one hand, we have investors who are panicking about the fact that EOS just froze 27 accounts without a lot of transparency.

On the other, we’re aware of members within the EOS team itself that have concerns about the current arbitration process and who wish to work on addressing it. And still, there’s also a significant amount of FUD spread about this topic with sensationalism galore.

Since all of this happened on a Friday evening, we had difficulty contacting anyone from the EOS team itself, but we will come up with more updates as more people get a chance to speak to us after the weekend.