A recent study conducted by AMLBot, a blockchain analytics firm, has uncovered significant disparities in the approaches taken by the two leading stablecoin issuers, Tether and Circle, regarding the freezing of cryptocurrency assets associated with illicit activities.
The report reveals that between 2023 and 2025, Tether froze approximately $3.3 billion worth of USDT, while Circle froze around $109 million in USDC. This indicates that Tether froze nearly 30 times more funds than Circle during the same period.
The analysis demonstrates that Tether imposed restrictions on 7,268 wallet addresses across various blockchains, including Ethereum and Tron. Of these freezes, more than 2,800 were conducted in coordination with U.S. law enforcement agencies. A significant portion of the frozen assets—comprising over 53% of total USDT freezes—was located on the Tron network, a popular choice for swift and cost-effective stablecoin transfers.
One notable distinction highlighted in the report is Tether’s ability to burn and reissue tokens. In certain instances, frozen USDT associated with fraudulent schemes or criminal behavior was permanently eliminated, and new tokens were issued to reimburse victims or authorities. AMLBot noted that this process was utilized in several major enforcement cases over the past two years.
On the other hand, Circle, the issuer of USDC stablecoin, follows a more cautious and legally driven strategy. During the same timeframe, Circle blacklisted 372 addresses holding a total of $109 million. Circle only freezes assets when mandated by court orders, regulatory guidelines, or sanctions, and it does not engage in token burning or reissuing. Once frozen, USDC remains locked until authorized by legal entities for release.
AMLBot elucidated that these distinctions reflect divergent enforcement philosophies. Tether collaborates closely with law enforcement bodies and may freeze assets early in investigations to prevent further losses. Conversely, Circle restricts its actions solely to formal legal directives.
The report also underscores that while Tether’s proactive approach has facilitated the recovery of funds linked to fraud, trafficking, and scams, it has sparked concerns regarding centralized authority and user rights. Circle’s approach, although more gradual, is perceived as offering greater legal safeguards.
In essence, the findings underscore that stablecoins operate at the intersection of blockchain technology and traditional law enforcement, with each issuer striking a unique balance between speed, control, and legal certainty.
Trust with CoinPedia:
Since 2017, CoinPedia has been a trusted source for accurate and timely updates on cryptocurrency and blockchain developments. Our team of analysts and journalists adheres to stringent Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness) to ensure the creation of reliable content. Every article undergoes fact-checking against reputable sources to uphold accuracy, transparency, and dependability. Our review policy guarantees impartial assessments when endorsing exchanges, platforms, or tools. We are committed to providing prompt insights on all things crypto & blockchain, spanning from startups to industry leaders.
Investment Disclaimer:
The viewpoints and insights shared reflect the author’s personal opinions on the current market landscape. Prior to making investment decisions, we recommend conducting your own research. Neither the author nor the publication assumes liability for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may be featured on our platform. Advertisements are clearly labeled, and our editorial content remains independent from our advertising partners.