Can a tokenized security be frozen or moved by court order?
With ERC-3643, yes. Authorised agents can freeze a whole wallet, freeze part of a balance, pause the token, or force a transfer from one holder to another, for example to carry out a court order. The receiver of a forced transfer must still be a verified investor, and every action is recorded on chain.
Key facts
- Freeze a wallet:
setAddressFrozen(). - Freeze part of a balance:
freezePartialTokens(). - Pause all transfers:
pause(). - Force a transfer:
forcedTransfer(). Frozen units are released first if needed. - Only agents appointed by the token’s owner can use these controls.
Does a forced transfer skip every check?
No. In the reference implementation it skips the offering’s transfer rules, because a court order overrides them, but the receiver must still be verified.
Is it recorded?
Yes. Each control emits an event, such as AddressFrozen, TokensFrozen or Transfer, in a transaction sent from the agent’s address, so both are on the record.