While some people think "oh if you stole the money or involved in terrorism" the reality is: "if the government wants your money". These centralized companies behind all these currencies have to follow the law, so if government decides you are a bad guy, then they can freeze your assets just like they do at banks as well. So assume you have USDC at Coinbase, and government seizes your assets, they just mail Coinbase and tell them to freeze your account, and Coinbase will follow, as simple as that.
Do you think these countries are always fair? Like if we could have governments decide everything, they are always fair and great? Of course not, they are not, and they are sometimes doing shady stuff as well, so your money could be gone.
Yes, the government can freeze our money if it is in the form of centralized stablecoin but is it really as serious as you say? If you don't break the law, don't engage in money laundering, terrorism...then there's no reason to fear that they will do those things to you. And if you are a criminal, a terrorist and your money is dirty money, do you think you can escape government surveillance even if you use decentralized coins?
Let's be real: have you ever had your money stolen or frozen by the government for no reason when you did nothing wrong? As I said above: they can freeze our money but not as severe as you describe, you are over exaggerating.