A brand new on-chain research revealed by the AMLBot crew reveals that Tether has frozen greater than $3.29 billion in USDT throughout the Ethereum and Tron blockchains between 2023 and 2025, blacklisting 7,268 addresses within the course of.
The findings highlighted a pointy distinction with Circle’s USDC, which froze $109 million throughout simply 372 addresses throughout the identical interval, pointing to 2 very completely different enforcement philosophies shaping the stablecoin market.
Two Distinct Paths for Stablecoin Policing
AMLBot’s information, shared this month alongside an up to date Dune dashboard, painted a transparent image of scale. USDT freezes outpaced USDC by roughly 30 instances in each tackle depend and worth. A lot of that distinction got here from Tron, the place there’s $1.75 billion in USDT sitting in blacklisted wallets, reflecting the community’s heavy use in Asia, peer-to-peer markets, and cross-border settlements.
Tether’s mannequin facilities on frequent coordination with authorities. The issuer works with greater than 275 legislation enforcement companies throughout 59 jurisdictions and may prohibit wallets not solely after courtroom orders, but in addition following notifications tied to hacks or ongoing probes.
In July 2024 alone, USDT freezes topped $130 million, together with $29.6 million on Tron, linked to Cambodia’s sanctioned Huione Group. Social media reactions on the time have been blended, with some customers praising sooner sufferer restoration whereas others warned concerning the attain of centralized issuers.
A particular characteristic of USDT is its burn-and-reissue course of. After an investigation, frozen tokens might be destroyed and changed with clear ones despatched again to victims or authorities. AMLBot’s report famous notable burn exercise in late 2025, with single-month totals above $25 million.
Nonetheless, the identical system has drawn criticism. In April 2025, a Texas-based agency sued Tether after $44.7 million was frozen on the request of Bulgarian police, arguing correct worldwide procedures weren’t adopted.
Circle’s method stands in distinction, with USDC freezes usually following specific authorized or regulatory triggers comparable to courtroom orders or sanctions listings. On-chain information reveals fewer occasions that arrive in batches somewhat than a gentle circulate. As soon as an tackle is blocked, funds stay locked till authorized clearance is granted, with no burn-and-reissue possibility.
Why the Divide Issues for Stablecoin Adoption
The timing of this report is notable as Circle pushes deeper into regulated markets. Earlier within the month, the agency introduced a wide-ranging partnership with Bybit to make USDC a default stablecoin throughout the change’s buying and selling, funds, and financial savings merchandise. The technique leans closely on predictability and compliance, traits establishments usually favor.
On the similar time, latest incidents underscore the worth of fast intervention. After a dealer misplaced almost $50 million in USDT to an address-poisoning rip-off a couple of days in the past, former Binance CEO Changpeng Zhao renewed requires wallet-level protections and shared blacklists. Episodes like this clarify why some customers view Tether’s hands-on posture as a sensible protection, whilst privateness issues persist.
The information reveals that stablecoin enforcement is not a distinct segment subject, provided that these tokens are transferring additional into on a regular basis finance, which means that the stability between consumer safety, authorized certainty, and centralized management will stay one of many trade’s most contested questions heading into the brand new yr.
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