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Today, over 72 million USDT on the blockchain were directly frozen by Tether.
It's not stolen, not transferred by mistake—Tether actively pressed the freeze button.
What does this mean? Your USDT is not what you might think of as "on-chain assets, fully autonomous control."
As long as Tether determines there is an issue with your address (suspected money laundering, hacking, sanctions), it can unilaterally turn your USDT into a string of numbers that cannot be transferred.
This is the underlying design of USDT as a centralized stablecoin—"decentralization" has nothing to do with the USDT you hold; the freeze switch has always been in Tether's hands.
This incident isn't necessarily a bad thing—Tether working with law enforcement agencies to freeze illicit funds is routine.
But you need to clearly understand: the USDT in your wallet has different degrees of freedom compared to the ETH in your wallet.