From 2023 to 2025, Tether and Circle froze $3.3 billion and $109 million in cryptocurrencies, respectively. This confirmed clear variations in how the 2 main issuers of dollar-pegged stablecoins handle unlawful transactions and monetary dangers.
An evaluation by blockchain forensics agency AMLBot examined stablecoin freezing exercise in Ethereum (ERC-20) and Tron (TRC-20). On this, not solely the blocked funds have been evaluated, but additionally the intervention mannequin of every firm.
Tether, which is chargeable for USDT, leads the best way when it comes to quantity of frozen belongings. The corporate’s blacklist included 7,268 addresses, greater than 2,800 of which have been coordinated with U.S. authorities businesses. The corporate amassed a complete of $3.29 billion.
In response to AMLBot, Tether’s mechanism permits tokens to be frozen and reissued, “returning thousands and thousands of {dollars} to fraud victims” and serving to seize funds associated to terrorism, human trafficking, and fraud schemes. From 2024 to 2025, Tether “burned” as much as 30 million USDT to guard stolen belongings and reissue clear replacements to affected customers.
In distinction, Circle took a extra conservative strategy. USDC stablecoins can solely be frozen by court docket order, sanctions, or regulatory orders. Throughout the identical interval, Circle blocked 372 addresses and $109 million price of Ethereum.
Not like tethers, Circle doesn’t reissue or destroy tokens. The tackle will stay blocked till the restriction is lifted. Moreover, the corporate publicly stories all blacklisted addresses to extend transparency and regulatory compliance.
AMLBot CEO Slava Demchuk defined that rising the quantity of USDT locked doesn’t essentially enhance compliance. Tether’s increased numbers replicate that USDT is utilized in riskier transactions, significantly Tron, and that the corporate applies a proactive intervention mannequin that leaves a visual hint on the community.
Within the case of USDC, the decline in exercise displays decrease publicity to illicit flows and a stricter freezing mannequin based mostly on judicial necessities.
extra 53% of USDT locked with Tether is appropriate with the Tron community, The overall provide of USDT, a preferred blockchain for stablecoin purposes, will exceed $191 billion in 2025, and its consumer base reached 500 million in October.
Circle has roughly $78 billion price of USDC in circulation.
Authorized dangers and disputes
The report additionally highlights the authorized dangers related to Tether’s aggressive strategy. Intervention with no court docket order could give rise to authorized disputes.
In April 2025, Riverstone Consultancy sued Tether for failing to adjust to authorized procedures following a block of roughly $45 million requested by Bulgarian police. Tether has labored with greater than 275 blockchain intelligence businesses and corporations in 59 jurisdictions and utilized a speedy response mannequin to course of as much as $2.7 billion in stolen funds.
In response to every firm, Freezing stablecoins has change into an important instrument to cease unlawful circulation. Nevertheless, specialists akin to Dmytro Tarasiuk, Product Director at Core3, warn that these practices are indicative of the centralization of actors inside the ecosystem.
For Tarasiuk, these blocks replicate the institutionalization of the market, with USDT and USDC turning into the first gateways for institutional funding, international adoption, and authorities interplay.
Lastly, the expansion of freezes and blacklists has led to debates in regards to the erosion of decentralization and privateness, elementary rules of the ecosystem.
As U.S. and European Union regulators search to extend oversight, stablecoin issuers should stability transparency, compliance, and consumer safety whereas sustaining investor confidence and market integrity.
