Alisa Davidson
Printed: December 25, 2025 at 3:24 am Up to date: December 25, 2025 at 3:24 am
Edited and fact-checked:
December 25, 2025 at 3:24 am
In Temporary
Between 2023 and 2025, Tether froze roughly $3.3 billion throughout 7,268 addresses utilizing a proactive “freeze, burn, and reissue” strategy, whereas Circle froze $109 million throughout 372 addresses solely below authorized or regulatory orders.
AMLBot, a platform specializing in cryptocurrency compliance and blockchain analytics, launched a report titled “Stablecoin Freezes 2023–2025,” analyzing freezing exercise for main stablecoins over this era and highlighting notable variations in strategy and scale between Tether (USDT) and Circle (USDC).
The report analyzes freezes throughout Ethereum and TRON networks to trace how these stablecoins have been utilized in investigative processes between 2023 and 2025. It particulars not solely the frequency of freezes but additionally the explanations behind them, patterns noticed, and their position in sufferer restitution, legislation enforcement coordination, and large-scale regulatory enforcement.
In line with AMLBot’s up to date Dune Dashboard for 2023–2025, Tether has blacklisted 7,268 addresses throughout Ethereum and TRON, freezing a complete of $3.29 billion. Circle, by comparability, has blacklisted 372 addresses with $109 million frozen. Together with TRON knowledge additional emphasizes the disparity: USDT freezes surpass USDC by roughly 30 instances in each the variety of addresses and the entire asset worth.
The underlying distinction stems from contrasting operational approaches. Tether employs a proactive technique, collaborating with legislation enforcement and blockchain intelligence suppliers, whereas Circle acts in response to formal judicial orders or regulatory necessities.
Tether’s enforcement footprint is in depth. Its freezing and reissuance processes have returned substantial sums to victims and supported legislation enforcement actions in opposition to fraud, terrorism, and human trafficking. Notably, in July 2024, USDT freezes exceeded $130 million, together with $29.6 million on TRON linked to the Huione Group in Cambodia. Tether works with over 275 legislation enforcement companies throughout 59 jurisdictions and sometimes freezes tokens preemptively to forestall losses, even with out court docket orders. Frozen tokens might be burned and changed to facilitate sufferer restitution, with late 2025 displaying spikes exceeding 25–30 million USDT destroyed. This centralized management, nonetheless, raises privateness and censorship considerations and has led to authorized challenges, akin to a lawsuit following the freezing of 44.7 million USDT on the request of the Bulgarian Police Division.
Circle, in distinction, follows a reactive, compliance-driven mannequin. Its freezes, totaling $109 million throughout 372 addresses, are initiated solely to fulfill authorized obligations, akin to court docket orders or sanctions. This ends in fewer however bigger batch actions, and the frozen property stay static till formal authorization permits launch. Circle doesn’t implement a burn-and-reissue mechanism, sustaining a strictly legally anchored strategy.
Evaluating Stablecoin Freeze Insurance policies: Tether’s Proactive Method Vs. Circle’s Compliance-Pushed Mannequin
Tether and Circle implement stablecoin freezes utilizing distinct approaches formed by their respective insurance policies and regulatory contexts. Tether points USDT throughout a number of blockchains, together with Ethereum, TRON, and Solana, with good contracts that enable addresses to be blacklisted, funds to be burned, and new tokens to be issued for sufferer restitution or legislation enforcement functions. Frozen addresses can generally be faraway from the blacklist, and never all freezes result in quick burn or reissuance. Tether’s Phrases of Service allow token freezes when required by legislation or at its discretion to guard customers, and freezes are executed via a multi-signature pockets system, which might create transient delays exploited by illicit actors. Since 2017, such delays have contributed to roughly $78 million in losses, although Tether emphasizes the method is a safeguard for its $100 billion system. The corporate has frozen or reissued greater than $2.7 billion in illicit funds and works with over 275 legislation enforcement companies throughout 59 jurisdictions. Whereas Tether often freezes funds proactively to guard customers, this centralized management has prompted authorized challenges and raised considerations over privateness and censorship.
Circle, in contrast, governs USDC freezes with a reactive, compliance-driven mannequin. Its good contracts enable addresses to be blacklisted, stopping transfers with out destroying the underlying tokens. Freezes are utilized solely to adjust to authorized orders, safety incidents, or sanctions, and they are often reversed as soon as the underlying situation is resolved. Circle maintains public reporting of frozen addresses and related token quantities, with oversight from its accounting auditors, making certain transparency. Working primarily below US regulatory necessities, Circle’s freezes are legally anchored and fewer frequent, showing as batch actions, not like Tether’s steady enforcement movement.
Collectively, these examples illustrate the strain in stablecoin administration between proactive danger mitigation, person safety, and the rules of decentralization, highlighting how regulatory context, contract design, and firm coverage form the appliance of freezes on blockchain property.
Disclaimer
Consistent with the Belief Mission pointers, please be aware that the knowledge supplied on this web page just isn’t supposed to be and shouldn’t be interpreted as authorized, tax, funding, monetary, or another type of recommendation. It is very important solely make investments what you’ll be able to afford to lose and to hunt impartial monetary recommendation if in case you have any doubts. For additional info, we propose referring to the phrases and situations in addition to the assistance and assist pages supplied by the issuer or advertiser. MetaversePost is dedicated to correct, unbiased reporting, however market situations are topic to alter with out discover.
About The Writer
Alisa, a devoted journalist on the MPost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising tendencies and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.
Extra articles
Alisa, a devoted journalist on the MPost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising tendencies and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.
Extra articles
