A few days ago Zilliqa asked CEXs to FREEZE ALL $ZIL deposits & withdrawals after their hack. Yesterday WEMIX made a similar request: freeze funds tied to their contract breach. Same ask? Not even close. But both are wrong. Zilliqa wanted a full market halt - punishing every holder. WEMIX asked to block only assets clearly traced to the minting of unbacked stablecoins on WEMIX 3.0. Second is more reasonable, targeting only tainted funds. But reasonable ≠ justified. Blocking tokens directly from the hacked contract stops spread. Blocking after 5 hops - freezes an innocent buyer with zero connection to the hack. And exchanges don't freeze just the suspicious amount. They freeze the ENTIRE balance. You get $100 of tainted funds, you lose access to your whole $12k for weeks. There is a better solution. CEXs have KYC. If tainted funds land there, you KNOW who received them. Hand that info to law enforcement. Trace the person, don't nuke their account. Per @Cointelegraph, some exchanges froze anyway. Which is exactly the takeaway: Don't use exchanges that can freeze you. Use https://t.co/GOvjhHpdDS. We technically can't hold your funds, only what you send for the swap.
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