Many of us think that holding cryptocurrencies in our wallets is safe, but is it really?
According to Coindesk.com Tether aka USDT has frozen 160 Million USDT on the Ethereum blockchain. The funds were frozen due to a request from law enforcement. USDT was able to freeze the funds via its smart contract (its code).
Another example of funds being frozen is when Acala (Ausd) was hacked. The stablecoin Ausd was deppeged from the dollar and went down to about a cent. Acala which claims to be Decentralized almost immediately froze the network putting it in "maintenance mode". It was then able to regain its peg to the dollar but...is a network that can be frozen at command truly decentralized?
Last but not least TornadoCash. TornadoCash is a coin mixing tool that makes it difficult to trace funds after the mixing happens. The tool was sanctioned and made it against the law for some users to interact with it. Aave(which is a finance protocol) reportedly blocked Justin Sun (The Founder of Tron)from accessing the Aave web app.
There are many other examples such as the ones above, illustrating how crypto is being attacked left and right in an indirect way.
Regulations may sometimes be helpful but to what end? Are there other motives behind its regulations? We can only hope that the regulations being put in place are there to help protect crypto users rather than diminish the purpose of cryptocurrencies.
