Tether and Circle, two leading stablecoin issuers, are at odds over their approaches to handling stolen funds in the wake of recent protocol attacks. Tether swiftly froze $3.29 million in USDT stolen from the NEAR ecosystem's Rhea Finance, earning praise for its rapid response. In contrast, Circle faced criticism and a class-action lawsuit for not freezing $230 million in USDC stolen from Drift Protocol, citing its policy of requiring official legal orders before intervention. This divergence highlights a broader philosophical debate in the crypto community about centralization versus due process. Tether's proactive measures are seen as efficient but raise concerns about centralized control, while Circle's adherence to legal protocols emphasizes neutrality but can delay action. As Tether integrates more with law enforcement, freezing over $3.3 billion in assets, the debate intensifies over the balance between security and decentralization in the Web3 space.