The results of the freeze policies implemented by stablecoin issuers Tether and Circle against crypto assets linked to illicit activities between 2023 and 2025 have become apparent.
According to the report, Tether blocked approximately $3.3 billion worth of crypto assets through its freeze mechanism during this period, while Circle’s total frozen amount remained at $109 million. These figures show a difference of approximately 30 times between the two companies.
According to AMLBot data, Tether blacklisted 7,268 addresses during this period. More than 2,800 of these were blacklisted as part of operations conducted in coordination with US law enforcement.
The company also aimed to return some funds linked to fraud and criminal proceeds to victims by removing them from the system through its “freeze + burn + re-issue” model. The report also noted that more than 53% of the frozen USDT assets were held on the Tron network.
Circle, on the other hand, is taking a more cautious approach. The company has only frozen 372 addresses, totaling $109 million. Circle emphasized that these actions are carried out solely in accordance with court orders or regulatory directives, and that it does not resort to burning or re-issuing the frozen tokens.
Experts say this differing approach between the two companies demonstrates the adoption of different strategies regarding regulatory compliance and crime prevention within the stablecoin ecosystem. According to the report, such practices are expected to become even more important in the coming period with increased oversight.
*This is not investment advice.
