AMLBot Publishes ‘Stablecoin Freezes 2023–2025’ Report: $3.3B In USDT And $109M In USDC Restricted
AMLBot, a platform specializing in cryptocurrency compliance and blockchain analytics, launched a report titled “Stablecoin Freezes 2023–2025,” analyzing freezing exercise for main stablecoins over this era and highlighting notable variations in strategy and scale between Tether (USDT) and Circle (USDC).
The report analyzes freezes throughout Ethereum and TRON networks to trace how these stablecoins have been utilized in investigative processes between 2023 and 2025. It particulars not solely the frequency of freezes but in addition the explanations behind them, patterns noticed, and their position in sufferer restitution, legislation enforcement coordination, and large-scale regulatory enforcement.
According to AMLBot’s up to date Dune Dashboard for 2023–2025, Tether has blacklisted 7,268 addresses throughout Ethereum and TRON, freezing a complete of $3.29 billion. Circle, by comparability, has blacklisted 372 addresses with $109 million frozen. Including TRON knowledge additional emphasizes the disparity: USDT freezes surpass USDC by roughly 30 occasions in each the variety of addresses and the entire asset worth.
The underlying distinction stems from contrasting operational approaches. Tether employs a proactive technique, collaborating with legislation enforcement and blockchain intelligence suppliers, whereas Circle acts in response to formal judicial orders or regulatory necessities.
Tether’s enforcement footprint is intensive. Its freezing and reissuance processes have returned substantial sums to victims and supported legislation enforcement actions in opposition to fraud, terrorism, and human trafficking. Notably, in July 2024, USDT freezes exceeded $130 million, together with $29.6 million on TRON linked to the Huione Group in Cambodia. Tether works with over 275 legislation enforcement companies throughout 59 jurisdictions and infrequently freezes tokens preemptively to forestall losses, even with out courtroom orders. Frozen tokens may be burned and changed to facilitate sufferer restitution, with late 2025 displaying spikes exceeding 25–30 million USDT destroyed. This centralized management, nevertheless, raises privateness and censorship issues and has led to authorized challenges, comparable to a lawsuit following the freezing of 44.7 million USDT on the request of the Bulgarian Police Department.
Circle, in distinction, follows a reactive, compliance-driven mannequin. Its freezes, totaling $109 million throughout 372 addresses, are initiated solely to fulfill authorized obligations, comparable to courtroom orders or sanctions. This ends in fewer however bigger batch actions, and the frozen property stay static till formal authorization permits launch. Circle doesn’t implement a burn-and-reissue mechanism, sustaining a strictly legally anchored strategy.
Comparing Stablecoin Freeze Policies: Tether’s Proactive Approach Vs. Circle’s Compliance-Driven Model
Tether and Circle implement stablecoin freezes utilizing distinct approaches formed by their respective insurance policies and regulatory contexts. Tether points USDT throughout a number of blockchains, together with Ethereum, TRON, and Solana, with sensible contracts that permit addresses to be blacklisted, funds to be burned, and new tokens to be issued for sufferer restitution or legislation enforcement functions. Frozen addresses can typically be faraway from the blacklist, and never all freezes result in speedy burn or reissuance. Tether’s Terms of Service allow token freezes when required by legislation or at its discretion to guard customers, and freezes are executed via a multi-signature pockets system, which might create temporary delays exploited by illicit actors. Since 2017, such delays have contributed to roughly $78 million in losses, although Tether emphasizes the method is a safeguard for its $100 billion system. The firm has frozen or reissued greater than $2.7 billion in illicit funds and works with over 275 legislation enforcement companies throughout 59 jurisdictions. While Tether often freezes funds proactively to guard customers, this centralized management has prompted authorized challenges and raised issues over privateness and censorship.
Circle, against this, governs USDC freezes with a reactive, compliance-driven mannequin. Its sensible contracts permit addresses to be blacklisted, stopping transfers with out destroying the underlying tokens. Freezes are utilized solely to adjust to authorized orders, safety incidents, or sanctions, and they are often reversed as soon as the underlying subject is resolved. Circle maintains public reporting of frozen addresses and related token quantities, with oversight from its accounting auditors, making certain transparency. Operating primarily underneath US regulatory necessities, Circle’s freezes are legally anchored and fewer frequent, showing as batch actions, not like Tether’s steady enforcement circulation.
Together, these examples illustrate the stress in stablecoin administration between proactive threat mitigation, person safety, and the rules of decentralization, highlighting how regulatory context, contract design, and firm coverage form the appliance of freezes on blockchain property.
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