Fund freezing is an attempt to prevent assets suspected of being stolen or involved in illicit activity from being transferred or withdrawn. In cryptocurrency, investigators may identify wallet addresses and ask exchanges or other custodial services to restrict associated funds. A freeze can slow movement, but it does not reverse a blockchain transaction or guarantee that assets will be recovered.
During an incident, fast transaction monitoring and communication with relevant service providers can help contain losses while investigators trace the funds. Attackers may move assets through multiple wallets or services, and decentralized systems may offer no central party able to freeze them. Defenders should treat freezing as one part of incident response, alongside securing keys and accounts, preserving evidence, and verifying claims about the funds and their movement.