Centralized exchanges and custodians aren't broken when they freeze accounts—they're working exactly as designed under AML/CFT regulations. If you're using a CEX, you're opting into KYC, asset freezes, and government reporting by default. This isn't a bug in decentralization; it's the inherent tradeoff of using intermediaries that operate under legal jurisdictions.

The tech lesson: self-custody and decentralized protocols (DEXs, non-custodial wallets) exist precisely to bypass this layer. But most users still choose convenience over sovereignty, then act surprised when compliance kicks in. You can't have regulatory protection and censorship resistance at the same time—pick your tradeoff.