Tether Freezes $3.3B vs Circle's $109M: Stablecoin Enforcement Gap

Tether froze $3.3B in USDT, blacklisting 7,268 addresses, while Circle froze $109M in USDC across 372 addresses. Tether acts proactively with law enforcement, while Circle freezes only under legal orders.

A series of reports based on AMLBot data reveal a stark contrast in how Tether and Circle, the two largest stablecoin issuers, handle the freezing of crypto assets linked to illicit activities between 2023 and 2025. Tether froze approximately $3.3 billion in USDT across 7,268 addresses, with over 2,800 actions coordinated with U.S. law enforcement. More than half of these freezes occurred on the Tron network. Tether employs a proactive “freeze, burn, and reissue” mechanism, allowing it to destroy and reissue tokens to recover and return funds. In contrast, Circle froze $109 million in USDC across 372 addresses, acting only under explicit court orders or regulatory directives, and does not burn or reissue tokens. Circle’s approach is more conservative and legally driven, while Tether’s is more aggressive and collaborative with law enforcement. These differing strategies highlight the varying philosophies and operational models shaping the stablecoin ecosystem’s response to compliance, crime prevention, and regulatory oversight.