The entire ecosystem that supports crypto activities, from mining manufacturers to power companies, node servers, data centers, broadband network providers, crypto exchanges, media, and various crypto projects, is decentralized. However, they are also subject to the control of centralized powers like China and the United States. If they refuse to comply, the CIA and the US military can intervene at any moment.
Freezing a wallet address is akin to a country issuing a wanted notice for a criminal; providing them with shelter is considered harboring a fugitive and is illegal. While a frozen wallet can still engage in private transactions, any transfer of crypto to your address will also freeze your wallet, making such transactions illegal and exposing you to the risk of being an accessory to the crime. Additionally, tracing the specific location of these transactions is not difficult, as all transactions are conducted over a network and the physical locations of the parties involved can be easily identified by following the communication log from the node servers to the broadband service providers. This allows for swift apprehension of individuals involved in such activities.