EOS Block Producers Freeze User Funds to Prevent Theft, Resulting in Twitter Backlash

EOS has frozen seven accounts compromised by the registration process through phishing scams, according to a Steemit post by EOS42, an EOS block producer candidate.

After the public learned of the account freezings, crypto enthusiast Nick Szabo referred to the EOS constitution as "Socially unscalable and a security hole:".

In EOS a few complete strangers can freeze what users thought was their money.

The EOS "Constitution" is socially unscalable and a security hole.

Nick Szabo⚡️ June 19, 2018 The impetus for the account freezing came from the EOS911 initiative, created by EOS42, that is designed to help the victims of EOS phishing attacks and those with compromised private keys.

EOS Block Producers discussed the decision to freeze the accounts over a two hour conference call, ultimately deciding that since the EOSIO constitution has not yet been ratified, they could ignore the EOS Core Arbitration Forum's decision not to freeze the funds.

EOS New York importantly notes that this is "Not what Block Producers are meant to do," adding they they froze the accounts in the "Spirit of the governance system we as a community seek to create, despite it being formally absent."

The ECAF has since requested that the funds continue to be frozen, with EOS New York writing that unless the ECAF submits formal ruling on the case by today at 1300 UTC, the funds will become unfrozen.

EOS completed their year-long, $4 billion initial coin offering at the beginning of June, launching their mainnet on June 15.

At press time, EOS has not responded to Cointelegraph's request for comment.