Tether (USDT) recently froze three such accounts on the Ethereum blockchain, which were holding more than 160 million USDT. That was done at the request of law enforcement.
Tether is centralized, not decentralized, so it can freeze USDT. This is his first freeze in the year 2022, otherwise it is doing this work since November 2017. However, investors don't care.
Tether has been controversial due to its raids, but remains the most popular stablecoin on the market. Various exchange platforms hold Tether in a big way despite having their own stablecoin.
It is also popular because if someone's legitimate USDT gets hacked, Tether can freeze it to prevent hackers from taking advantage of it. Tether also freeze the money that is subjected for terror funding.