TL;DR
Freeze authority is the wallet or program that can freeze any holder’s token account, preventing them from transferring or selling their tokens.
The freeze authority can lock any Associated Token Account holding their token. Once frozen, that wallet cannot sell, transfer, or interact with those tokens in any way. The freeze authority can also unfreeze accounts. This is a powerful control mechanism that has legitimate uses (regulatory compliance, escrow) but is extremely dangerous in the wrong hands.
A malicious creator can use freeze authority to create a honeypot — a token that anyone can buy but no one can sell. They allow buying to pump the price, then either freeze all holders and demand ransom, or selectively freeze everyone except their own wallets and dump. This is one of the simplest and most effective token scams.
Always verify freeze authority is revoked before buying any token outside of major protocols. Token Scanner flags active freeze authority as a high-risk indicator. Pump.fun tokens have freeze authority revoked upon graduation. If a token has active freeze authority and it’s not a well-known regulated project, treat it as a scam until proven otherwise.