Can Crypto Be Frozen?

The direct answer on freezing crypto.

TL;DR

TL;DR: Yes - three mechanisms: designation blocking (funds at a designated address become blocked property), issuer controls (stablecoin blocklists), and exchange-level freezes. A frozen wallet is still a designated party - screen it, block payments to it, and hold.

Designation blocking

When OFAC designates an address, funds there become blocked property. The owner may not transact them; anyone holding them must report. This is why designated wallets are on the list.

Issuer and exchange controls

Stablecoin issuers maintain blocklists; exchanges freeze accounts under court order or compliance policy. These are backstops - not your compliance program.

The honest note

The freeze is the compliant state. Unfreezing without authorization is itself a violation.