How Can Cryptocurrencies Be Frozen on a Blockchain?
The maxim of “not your keys, not your crypto”, is well-known in the cryptocurrency space — and many cryptocurrency users and investors count on this fact when taking custody of their own assets.
It is widely thought that if you take control of your private keys, you will always retain control of your assets, and hence, cannot be subject to censorship. But recent events have proven that this isn’t always the case.
Indeed, you might be surprised to find out that not only is it technically feasible to freeze assets held in an external wallet, but also relatively common. But, unless you’re involved in major criminal activity, the odds of it happening to you remain low.
Despite this, it is wise to familiarize yourself with this relatively unknown phenomenon. Here, we dispel the myth that cryptocurrencies cannot be frozen on-chain.
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