I don’t think stolen crypto should be frozen. How is that different to banks? Why do I need crypto now ?
They're just learning the same lessons the rest of the world learned already. Banking and it's attendant regulations and restrictions were put in place for good reasons and everything has a trade off. Being a libertarian is like being a baby.
Only the tokens whose smart contract has a freeze/blacklist function can be frozen, in this case that would be the stablecoins USDT and USDC.