Between 2023 and 2025, Tether and Circle froze $3.3 billion and $109 million, respectively, in cryptocurrencies. This showed clear differences in how the two main issuers of dollar-pegged stablecoins manage illicit transactions and financial risks.
A signature analysis blockchain forensics firm, AMLBot, examined stablecoin freezing activity on Ethereum (ERC-20) and Tron (TRC-20). In this, not only the blocked funds were evaluated, but also the intervention models of each company.
Tether, responsible for USDT, leads in volume of frozen assets. The company included 7,268 addresses on its blacklist, of which more than 2,800 were coordinated with US agencies. The company accumulated a total of USD 3.29 billion.
According to AMLBot, Tether’s mechanisms allow tokens to be frozen and reissued, “returning millions to fraud victims” and collaborating in the seizure of funds linked to terrorism, human trafficking, and fraudulent schemes. Between 2024 and 2025, Tether “burned” up to 30 million USDT to protect stolen assets and reissue clean replacements to affected users.
In contrast, Circle took a more conservative approach. Your USDC stablecoin is only frozen by court orders, sanctions or regulatory mandates. During the same period, Circle blocked 372 addresses and $109 million worth of Ethereum.
Unlike Tether, Circle does not reissue or destroy tokens; addresses remain blocked until the restriction is lifted. Additionally, the company publicly reports all blacklisted addresses, reinforcing transparency and regulatory compliance.
Slava Demchuk, CEO of AMLBot, explained that higher volume of USDT locked does not necessarily mean better compliance. Tether’s higher numbers reflect that USDT is used in more high-risk transactions, especially on Tron, and that the company applies a proactive intervention model that leaves a visible mark on the network.
In the case of USDC, the lower activity reflects lower exposure to illicit flows and a stricter freezing model, based on judicial requirements.
More than 53% of the USDT locked by Tether correspond to the Tron network, a popular blockchain for stablecoin use The total supply of USDT surpassed $191 billion in 2025, with the user base reaching 500 million in October.
Circle, for its part, maintains approximately $78 billion of USDC in circulation.
Legal risks and disputes
He report It also highlights the legal risks of Tether’s proactive approach. Interventions without a court order can generate legal disputes.
In April 2025, Riverstone Consultancy Inc. sued Tether following the blocking of nearly $45 million requested by Bulgarian police, alleging failure to comply with legal procedures. Tether operates with more than 275 blockchain intelligence agencies and firms in 59 jurisdictions, applying a rapid response model that has processed up to $2.7 billion in stolen funds.
According to the companies, Stablecoin freezes have become essential tools to stop illicit flows. However, experts such as Dmytro Tarasiuk, product director at Core3, warn that these practices show the centralization of actors within the ecosystem.
For Tarasiuk, the blocks reflect the institutionalization of the market, where USDT and USDC have become the main gateway for institutional investment, global adoption and interaction with governments.
Finally, the increase in freezes and blacklists has generated debates about the erosion of decentralization and privacy, fundamental principles of the ecosystem.
As regulators in the United States and the European Union seek to strengthen oversight, stablecoin issuers will need to balance transparency, legal compliance, and user protection, while maintaining investor trust and market integrity.