Between 2023 and 2025, Tether and Circle froze $3.3 billion and $109 million, respectively, in cryptocurrencies. This confirmed clear variations in how the 2 major issuers of dollar-pegged stablecoins handle illicit transactions and monetary dangers.
An evaluation by blockchain forensics agency AMLBot examined stablecoin freezing exercise on Ethereum (ERC-20) and Tron (TRC-20). On this, not solely the blocked funds had been evaluated, but additionally the intervention fashions of every firm.
Tether, answerable for USDT, leads in quantity of frozen property. The corporate included 7,268 addresses on its blacklist, of which greater than 2,800 had been coordinated with US businesses. The corporate gathered a complete of USD 3.29 billion.
In keeping with AMLBot, Tether’s mechanisms permit tokens to be frozen and reissued, “returning thousands and thousands to fraud victims” and collaborating within the seizure of funds linked to terrorism, human trafficking, and fraudulent schemes. Between 2024 and 2025, Tether “burned” as much as 30 million USDT to guard stolen property and reissue clear replacements to affected customers.
In distinction, Circle took a extra conservative strategy. Your USDC stablecoin is simply frozen by courtroom orders, sanctions or regulatory mandates. Throughout the identical interval, Circle blocked 372 addresses and $109 million value of Ethereum.
In contrast to Tether, Circle doesn’t reissue or destroy tokens; addresses stay blocked till the restriction is lifted. Moreover, the corporate publicly stories all blacklisted addresses, reinforcing transparency and regulatory compliance.
Slava Demchuk, CEO of AMLBot, defined that increased quantity of USDT locked doesn’t essentially imply higher compliance. Tether’s increased numbers mirror that USDT is utilized in extra high-risk transactions, particularly on Tron, and that the corporate applies a proactive intervention mannequin that leaves a visual mark on the community.
Within the case of USDC, the decrease exercise displays decrease publicity to illicit flows and a stricter freezing mannequin, based mostly on judicial necessities.
Greater than 53% of the USDT locked by Tether correspond to the Tron community, a preferred blockchain for stablecoin use The entire provide of USDT surpassed $191 billion in 2025, with the consumer base reaching 500 million in October.
Circle, for its half, maintains roughly $78 billion of USDC in circulation.
Authorized dangers and disputes
The report additionally highlights the authorized dangers of Tether’s proactive strategy. Interventions with out a courtroom order can generate authorized disputes.
In April 2025, Riverstone Consultancy Inc. sued Tether following the blocking of practically $45 million requested by Bulgarian police, alleging failure to adjust to authorized procedures. Tether operates with greater than 275 blockchain intelligence businesses and corporations in 59 jurisdictions, making use of a fast response mannequin that has processed as much as $2.7 billion in stolen funds.
In keeping with the businesses, Stablecoin freezes have grow to be important instruments to cease illicit flows. Nevertheless, specialists comparable to Dmytro Tarasiuk, product director at Core3, warn that these practices present the centralization of actors throughout the ecosystem.
For Tarasiuk, the blocks mirror the institutionalization of the market, the place USDT and USDC have grow to be the primary gateway for institutional funding, world adoption and interplay with governments.
Lastly, the rise in freezes and blacklists has generated debates in regards to the erosion of decentralization and privateness, basic rules of the ecosystem.
As regulators in the US and the European Union search to strengthen oversight, stablecoin issuers might want to stability transparency, authorized compliance, and consumer safety, whereas sustaining investor belief and market integrity.
