Cryptocurrency with an off switch.

[Renampun]

When it comes to Bitcoin, you can expect that no one will be able to freeze or intervene with the assets you hold if you store them in your non-custodial wallet.. But USDT, USDC, and other cryptos still carry the risk of being frozen or restricted by their issuers because they are launched with a centralized system that has the authority to intervene in the assets you hold if they have a strong reason to do so. So if you want full control over your assets, Bitcoin is the main one, while everything else still carries some risk.

[NefiSwap]

On the false-alarm question from the OP: USDT and USDC freezes work per address. The issuer puts the address on a blacklist in the token contract, and from then on nothing in that address can move, including clean tokens that arrived before or after.

The hackers usually swap out fast, so the people hurt by a wrong or broad freeze tend to be further down the chain, someone who received part of the funds in a P2P trade or as a payment. Getting an address unfrozen means going through the issuer's compliance team with proof of where your tokens came from, and that can take a long time.

If you accept USDT from strangers, receive it on a separate address from your savings and move it on once you've checked where it came from, so one bad payment can't lock everything you hold.