Stablecoin Address Blacklist Grows as Tether Freezes 3.3 Billion USDT

Tether freezes $3.3 billion in USDT between 2023 and 2025, far more than any other stablecoin issuer. Data from AMLBOT shows that Tether blacklisted thousands of addresses during this period, while Circle froze only $109 million. The numbers show a big difference in how the two companies handle fraud, investigations, and compliance.

Tether Freezes Significantly More Than Circle

According to reports,  between 2023 and 2025, Tether froze about $3.3 billion and blacklisted 7,268 addresses. More than 2,800 of these actions were done in coordination with U.S. law enforcement, often targeting scams or illegal activity. 

In comparison, Circle froze $109 million across 372 addresses. Circle mostly acts under court or regulatory orders and does not reissue frozen tokens.

Tether uses a freeze, burn, and reissue method. This means frozen tokens can be invalidated and then put back into circulation safely. 

Circle does not use this method. The difference in approaches shows that Tether is more aggressive and quick to respond to suspicious activity. Circle focuses on legal orders and formal processes.

In related news, with online scams increasing, Tether has launched a new security tool to help users protect their accounts. The company introduced PearPass, a free open-source password manager aimed at preventing unauthorized access and digital asset theft.

Tron and Ethereum Hold Most Frozen Funds

The majority of frozen Tether tokens were on the Tron blockchain, making up more than half of all frozen tokens. Another large portion, $1.54 billion, was on Ethereum. Circle’s frozen assets were almost entirely on Ethereum, totaling $109 million.

The data shows that Tether works across different networks to enforce rules and prevent misuse. The choice of blockchain matters because it affects how quickly and effectively the company can respond to illegal activity. Tether’s presence on multiple blockchains gives it more flexibility.

In a separate development, Visa is expanding its role in digital payments with a new stablecoins advisory service. The initiative aims to help banks and businesses understand how to use stablecoins in payments and operations.

Different Enforcement Approaches Affect Market Confidence

Tether’s freeze, burn, and reissue strategy highlights its proactive approach to preventing fraud. Circle’s method shows a more cautious path, relying on legal authority before taking action. These differences can influence how users and investors see each stablecoin.

Notably, the growing number of blacklisted addresses shows that regulators and law enforcement are paying closer attention to stablecoins.

Tether freezes, and blacklists illustrate how companies manage compliance and respond to criminal activity in digital assets. Users may view these measures as a sign of security or control over risk in the crypto market.