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DeFi: Frozen stolen funds spark controversy
Crypto World News reports that decentralized finance (DeFi) protocols face criticism for freezing stolen funds, with some claiming they are no different from centralized platforms. Recently on Arbitrum, assets linked to attackers were frozen, and some stablecoin issuers were publicly criticized for slow responses. Enso CEO Connor Howe stated that if a small group can freeze funds, then DeFi protocols are essentially no different from banks. He pointed out that transparency is crucial in the operation of security committees, and it must be clear who holds the keys and what safeguards are in place to prevent abuse. Centralized stablecoin issuers like Circle and Tether differ in their methods of freezing funds; Circle emphasizes legal procedures, while Tether acts more quickly. The recent Kelp DAO incident has reignited discussions about when to intervene, with industry debates over whether DeFi protocols should freeze funds during attacks.