DeFi can freeze stolen funds, but not everyone agrees it should
CoinTelegraph2h agoUpdated 1h ago

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DeFi protocols face pressure over freezing stolen funds following major exploits like Kelp DAO's $293 million hack. Arbitrum's security council froze attacker assets, sparking debate: should decentralized platforms intervene quickly or maintain ideological purity? Stablecoin issuers like Circle emphasize legal process, while others demand faster action. The core tension: who decides when intervention is justified and how transparent should those decisions be?
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