BroadChain News, April 26, 00:04, according to NewsBTC, cryptocurrency commentator Star pointed out that decentralization is actually a myth, as networks and enterprises can freeze funds. Tether recently coordinated with OFAC and US law enforcement to freeze $344 million USDT on the TRON network, its largest-ever freeze, executed directly through the USDT smart contract, making the funds visible but completely unusable. Star explained that Tether has administrative control over the USDT contract, allowing it to blacklist addresses, instantly freeze balances, and permanently destroy funds.
Tether confirmed the freeze action, stating it supported the US government in freezing $344 million USDT on two TRON addresses, which are linked to Iran. Iran, previously concerned about asset seizure, abandoned stablecoins in favor of Bitcoin for paying Strait of Hormuz transit fees, further highlighting the decentralization myth. Star noted that this freeze occurred just days after TRON founder Justin Sun claimed TRON is the "most decentralized blockchain," and Sun has yet to comment.
The Arbitrum incident has also raised concerns. Earlier this week, the Arbitrum Security Council took emergency action to freeze 30,766 ETH in the address of the Kelp DAO attacker, who stole approximately $292 million in staked ETH from the Kelp DAO bridge last week. Arbitrum stated that the Security Council acted based on law enforcement information about the attacker's identity. Commentator Pledditor pointed out that Arbitrum, often praised by Vitalik Buterin as the most decentralized Layer-2, froze funds; meanwhile, Helius CEO Mert praised the move, arguing that having control but refusing to use it to appease attackers would be a "worse and more disgraceful outcome."