Crypto can be frozen, even if you did nothing wrong, thoughts!!

Crypto is a digital money that we can hold, or now this can also be used for making some payments in some countries, but currently this adoption is not so big so very few countries are providing these facilities where we can make the payment using cryptocurrency. Generally stable stablecoins are preferred to avoid market volatility in terms of its value, and it also makes sense. But we need to understand that these stablecoins are managed by an entity.

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For example, USDT is managed by Tether, so they have the power to freeze your crypto funds, and this has also happened in the past. Similarly, USDC is managed by a circle, and they can also do the same because they have full control over it. What if I say that your crypto can be frozen even if you have not done anything wrong, and this is possible?

The same is happening with the banking ecosystem, where our funds are blocked by the banks without giving a valid reason, and they don't even notify the person that they are going to freeze the money lying in the bank account. This is an alarming situation in the crypto space, and I believe we need to understand how it works and what could be the ways we can follow to avoid the situation, but not always.

In today’s regulatory climate, a single transfer from a “tainted” wallet can result in frozen funds, account lockdowns, or blacklisted addresses—even when the user has no malicious intent. Tether alone has frozen over $2.5 billion tied to illicit activities.

We know that transactions are connected in the blockchain, so tracing is very easy and if something goes wrong happened we can trace it and follow the same. The funds can also be blocked or may.... You would not be able to do anything. Tithar has blocked a lot of money in the past, and it is roughly more than $2.5 million because of suspicious transactions or maybe some.... because of the blacklisted addresses.

I believe that this is a part that we need to understand well in crypto markets because no one likes their fun to be frozen. We need to understand that this is a precautionary measure we need to follow.

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