Tether and Circle, the two biggest names in the stablecoin market, are taking very different paths when it comes to freezing suspicious funds — and the gap between them is growing fast.
New data from blockchain compliance firm AMLBOT shows that between 2023 and 2025, Tether froze roughly $3.3 billion worth of crypto assets. By comparison, Circle froze just $109 million over the same period. That means Tether locked down about 30 times more value than its closest competitor.
The figures highlight how differently the issuers of USDT and USDC approach compliance, enforcement, and cooperation with authorities.
Tether’s aggressive freeze strategy
According to the data, Tether blacklisted 7,268 wallet addresses during the two-year period. More than 2,800 of those actions were carried out in direct coordination with U.S. law enforcement, targeting funds tied to scams, fraud, and other criminal activity.
One standout detail is where most of this activity happened. Over 53% of all frozen USDT was located on the Tron network, which has become a popular blockchain for stablecoin transfers due to its low fees and fast transactions.
Tether uses a unique “freeze, burn, and reissue” model. When funds are frozen and later recovered, the company can burn the original tokens and reissue new ones under controlled conditions. This allows stolen or illicit funds to be effectively removed from circulation.
Ethereum still plays a major role as well. The data shows that around $1.54 billion worth of USDT on Ethereum is currently sitting in banned wallets, underlining the scale of Tether’s enforcement actions on the network.
Circle takes a narrower approach
Circle’s response tells a very different story. The company froze just 372 addresses, totaling about $109 million in USDC. Almost all of those frozen funds are on the Ethereum network.
Unlike Tether, Circle only freezes assets when it receives explicit court orders or regulatory instructions. It also does not burn or reissue tokens once they are frozen. As a result, frozen USDC remains locked in banned wallets without further intervention.
Ethereum data reflects this approach closely, with $109.25 million in USDC currently held in blacklisted addresses — nearly identical to Circle’s reported enforcement total.
Two philosophies, one market
The sharp contrast in frozen value points to two distinct compliance philosophies. Tether appears focused on rapid intervention and large-scale asset recovery, often working closely with law enforcement. Circle, on the other hand, prioritizes legal formality and restraint, acting only when officially directed by courts or regulators.
These differences matter. Issuer policies, jurisdictional cooperation, and enforcement tools directly shape how stablecoins behave during sanctions, investigations, or fraud probes.
As stablecoins continue to play a bigger role in global crypto markets, how issuers police their tokens could become just as important as the technology behind them.
Also Read: Obyte Turns Nine With On-Chain Governance and New DeFi Push
