The $280M question: Should stolen stablecoins be frozen before a court steps in?
Alice Frei examines whether a stablecoin issuer’s ability to interrupt theft can create a duty to act, alongside the legal safeguards governing freezes.
Summary
Alice Frei distinguishes an issuer’s technical ability, contractual discretion, and legal obligation to freeze funds. Her analysis examines the allegations against Circle after the Drift exploit and the tension between preserving stolen assets quickly and deciding ownership through legal process. It presents competing arguments and an unresolved litigation question, rather than establishing that issuers already owe a general duty to freeze without judicial authorization.