Crypto faces backlash for freezing stolen funds and for doing nothing, with expectations pulling in opposite directions.
Decentralized finance (DeFi) protocols are stepping in to freeze stolen funds while centralized issuers face criticism for holding back.
A recent intervention on Arbitrum saw attacker-linked assets frozen after a major exploit, while some stablecoin issuers, including Circle, have faced public backlash for slower or more limited responses in similar situations.
Connor Howe, CEO and co-founder of cross-chain infrastructure project Enso, said that crypto protocols are not that different from centralized platforms or banks if a small group of people can freeze funds.
“The differentiation from a bank compliance officer is less than DeFi idealists will ever admit,” Howe told Cointelegraph.
The debate isn’t the usual kerfuffle between decentralization and centralization, but about who gets to intervene and how quickly they can act. In practice, it can determine whether stolen funds are stopped or slip through.
