From 2023 to 2025, Tether and Circle froze $3.3 billion and $109 million of 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 had been evaluated, but additionally the intervention mannequin of every firm.
Tether, which is answerable for USDT, leads the best way by way of quantity of frozen belongings. The corporate’s blacklist included 7,268 addresses, greater than 2,800 of which had been coordinated with U.S. authorities businesses. The corporate accrued a complete of $3.29 billion.
In accordance with AMLBot, Tether’s mechanism permits tokens to be frozen and reissued, “returning hundreds of 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 method. USDC stablecoins can solely be frozen by courtroom order, sanctions, or regulatory orders. Throughout the identical interval, Circle blocked 372 addresses and $109 million value of Ethereum.
Not like tethers, Circle doesn’t reissue or destroy tokens. The handle 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 growing the quantity of USDT locked doesn’t essentially enhance compliance. Tether’s increased numbers mirror that USDT is utilized in riskier transactions, notably 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 primarily based on judicial necessities.
extra 53% of USDT locked with Tether is suitable with the Tron community, The entire provide of USDT, a preferred blockchain for stablecoin functions, will exceed $191 billion in 2025, and its person base reached 500 million in October.
Circle has roughly $78 billion value of USDC in circulation.
Authorized dangers and disputes
The report additionally highlights the authorized dangers related to Tether’s aggressive method. Intervention with out a courtroom order might 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 firms in 59 jurisdictions and utilized a speedy response mannequin to course of as much as $2.7 billion in stolen funds.
In accordance with every firm, Freezing stablecoins has develop into an important instrument to cease unlawful circulation. Nonetheless, consultants equivalent 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 mirror the institutionalization of the market, with USDT and USDC changing into the first gateways for institutional funding, world 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 person safety whereas sustaining investor confidence and market integrity.
