Depend on what you mean by "violates" and "cryptocurrency". A censored address or frozen address is nothing new, there was also an attempt to Bitcoin that some mining pool is censoring and won't process transactions that contains "bad coin". Anyway, cryptocurrencies do not defy centralization, and some cryptocurrencies could be centralized. So, there is no violation is going on here, and After all, the fundamentals of cryptocurrencies aren't set in stone, and there is no formal standard regarding what and how cryptocurrencies should behave.
well, decentralization is inherent in bitcoin.