The crypto world has recently stirred again, as the world's largest stablecoin issuer Tether has taken another controversial action. According to reports, Tether froze USDT worth $85,877, citing cooperation with law enforcement investigations. This move has once again sparked heated discussions within the crypto assets community regarding the essence of decentralization.

Tether's actions are not the first of their kind. According to public data, the company has frozen over $2.5 billion worth of USDT to date and has shut down more than 2,000 wallet accounts suspected of illegal activities. Unlike truly decentralized Crypto Assets like Bitcoin and Ethereum, USDT is controlled by the centralized Tether company, which can unilaterally freeze user funds through smart contracts.

Looking back, Tether froze 225 million USDT in November 2023, claiming it was in response to human trafficking and fraud activities in Southeast Asia. In June 2025, another 700 million USDT was frozen, allegedly related to entities in Iran. These large-scale fund freezes have raised concerns among crypto enthusiasts.

Although Tether claims that these actions are aimed at combating crime, many question whether this approach contradicts the original intention of cryptocurrencies. There are views that Tether's actions make USDT more like a tool that can be controlled by the government, similar to traditional banking systems or Central Bank Digital Currencies (CBDCs). This centralized control capability seems to be at odds with the financial freedom and decentralization spirit that cryptocurrencies pursue.

In the crypto assets community, many voices have expressed dissatisfaction with this practice. Some have sarcastically referred to USDT as "frozen coin," believing that this approach undermines the original intention of using crypto assets to evade government and bank control.

However, this issue is not black and white. Tether's cooperation with law enforcement may help combat illegal activities in the crypto world and enhance the industry's compliance and credibility. At the same time, it has raised concerns about privacy rights and the concept of Decentralization.

This event once again highlights the challenges faced by the Crypto Assets industry: how to find a balance between regulatory compliance and the concept of Decentralization? How to protect user rights while not becoming a haven for criminals? These questions require in-depth thinking and discussion throughout the entire industry.