Tether Froze $3.3B vs Circle's $109M in Crypto Assets

Source: Coinomedia Original Title: Tether Froze $3.3B vs Circle’s $109M in Crypto Assets Original Link: https://coinomedia.com/tether-circle-freezing-gap/

Key Differences in Asset Freezing Approaches

• Tether froze $3.3B in assets, blacklisting over 7,000 addresses.
• Circle froze $109M only under legal or regulatory orders.
• Over half of frozen USDT was on the Tron blockchain.

Between 2023 and 2025, Tether and Circle took vastly different approaches when it came to freezing crypto assets linked to scams, crime, or regulatory enforcement. According to a report by AMLBot, Tether blacklisted a staggering $3.3 billion worth of USDT during this period—almost 30 times more than Circle’s $109 million in frozen USDC.

Tether’s aggressive use of its freezing mechanism resulted in the blacklisting of 7,268 wallet addresses. Of those, over 2,800 were frozen in coordination with U.S. law enforcement agencies. Tether didn’t just freeze these assets—it also used a “freeze + burn + reissue” strategy to neutralize illicit funds and restore value back into circulation. Notably, more than 53% of the frozen Tether assets were on the Tron blockchain, reflecting its significant use in various parts of the world.

Circle Takes a Cautious and Legal-First Route

In sharp contrast, Circle adopted a much more conservative and compliance-focused method. The company froze only 372 wallet addresses over the two-year span, totaling around $109 million in USDC. According to the report, Circle’s freezes occurred strictly under court orders or specific regulatory instructions.

Unlike Tether, Circle did not engage in token burning or reissuing. This hands-off approach reflects its commitment to due process and highlights the different roles stablecoin issuers play in crypto’s evolving regulatory landscape.

What This Means for the Crypto Ecosystem

The stark difference in frozen amounts and methods highlights the tension between proactiveness and caution in crypto compliance. Tether’s approach shows a willingness to work closely with law enforcement and take swift action to mitigate scams. Circle’s measured strategy, on the other hand, may appeal more to institutions and users prioritizing legal certainty and process.

As regulatory frameworks continue to evolve globally, stablecoin issuers may face increased pressure to strike a balance between compliance, decentralization, and user trust.