A new on-chain study published by AMLBot shows that between 2023 and 2025, Tether has frozen over 3.29 billion USDT on the Ethereum and Tron blockchains, and blacklisted 7,268 addresses. This figure far exceeds Circle, as USDC only froze about $109 million related to 372 addresses during the same period, indicating two very different enforcement philosophies shaping the stablecoin market.
According to data shared alongside an updated Dune dashboard, the scale of USDT freezing is about 30 times larger than USDC, both in value and number of wallets. Notably, the Tron network alone accounts for up to 1.75 billion USDT frozen, reflecting Tron’s central role in P2P transactions, cross-border payments, and the Asian market.
Tether pursues an active cooperation model with authorities, currently working with over 275 law enforcement agencies across 59 jurisdictions. The company can restrict wallets not only after court orders but also based on notices related to hacks or ongoing investigations. By July 2024, the total value of frozen USDT exceeded $130 million, including $29.6 million on Tron related to Cambodia’s Huione Group, which is under sanctions.
A major difference for USDT is the burn and reissue mechanism. After investigations are complete, frozen tokens can be destroyed and replaced with “clean” tokens to compensate victims or authorities. AMLBot recorded significant USDT burning activity toward the end of 2025, with over $25 million in value burned in just one month. However, this approach has also been controversial. In April 2025, a Texas-based company sued Tether after $44.7 million was frozen at the request of Bulgarian police, claiming that international legal procedures were not fully followed.
In contrast, Circle adopts a more cautious approach. USDC freezes typically occur only when there is clear legal basis such as court orders or sanctions lists, with fewer cases and usually in batches. When an address is frozen, the funds remain locked until a new legal decision is made, and there is no burn-and-reissue mechanism.
The report was published amid Circle’s efforts to expand into heavily regulated markets, recently partnering with Bybit to make USDC the default stablecoin on their platform. Meanwhile, recent scam incidents have highlighted the value of quick intervention, making Tether’s “strong hand” approach seen by some users as a practical safeguard, despite ongoing concerns about centralization.
Thach Sanh
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