How can someone hold that kind of money in a centralised exchange? Not to be harsh, but the person typically got what he deserved. Coinbase is one of the exchanges that can easily freeze users funds once they suspect anything or the 3-letter government agencies ask them to do it.

Even if you want to hold money in a self-custodial wallet, it shouldn't be centralised tokens/coins. The worst of it is tether; they can freeze your fund while it's in your private wallet immediately. The government asks them to do that because they are fully open to obeying and taking orders from them.