Cryptocurrency freezing often occurs under legal and regulatory scrutiny, especially in cases of suspected fraud, money laundering, or financing of terrorism.
Regulatory bodies and courts may order the freezing of assets during investigations or legal disputes to ensure compliance and halt illicit transactions.
Exchanges and wallet providers might also freeze assets as a security measure against unauthorised access or suspicious activities.
The process raises ethical concerns about autonomy versus control in decentralised systems, balancing the need for security with individual rights.