Exchanges, Stablecoin Issuers and Authorities Can Restrict Crypto in Three Ways

Crypto holders can lose access through an exchange account restriction, a stablecoin address block or law enforcement efforts to seize crypto or reach wallet keys, with each route working differently. On a centralized exchange, the platform holds the keys used to move customers’ crypto and controls withdrawals from hosted accounts. Coinbase, for example, controls the relevant private keys and may use shared blockchain addresses. It can suspend account activity or block withdrawals without changing the blockchain’s transaction history. Authorities can also seek crypto held by an exchange through legal process directed at the custodian.