Report: Tether blacklists 7,268 wallets vs. Circle’s 372

AMLBot data shows that USDT issuer Tether’s freezes were about 30 times greater than USDC’s, when measured by value and number of addresses.

A new on-chain study published by the AMLBot team shows that Tether froze more than $3.29 billion worth of USDT on the Ethereum and Tron blockchains between 2023 and 2025, blacklisting 7,268 addresses.

The findings pointed to a sharp contrast with Circle’s USDC, which froze $109 million at just 372 addresses during the same period, pointing to two very different enforcement philosophies shaping the stablecoin market.

Two different paths for Stablecoin policing

AMLBot’s data, shared this month alongside an updated Dune dashboard, painted a clear scale image. USDT freezes about 30 times faster than USDC, both in terms of the number of addresses and their value. Much of that difference came from Tron, where $1.75 billion in USDT sits in blacklisted wallets, reflecting the network’s heavy use in Asia, peer-to-peer markets and cross-border settlements.

Tether’s model is based on frequent coordination with authorities. The publisher works with more than 275 law enforcement agencies in 59 jurisdictions and can restrict wallets not only after court orders, but also after reports related to hacks or ongoing investigations.

In July 2024 alone, USDT freezes exceeded $130 million, including $29.6 million on Tron, linked to the Cambodia-sanctioned Huione Group. Reactions on social media at the time were mixed, with some users praising faster recovery for victims, while others warned about the reach of centralized issuers.

A distinguishing feature of USDT is its burning and reissuing process. After an investigation, frozen tokens can be destroyed and replaced with clean tokens that are returned to victims or authorities. AMLBot’s report noted notable fire activity in late 2025, with single-month totals exceeding $25 million.

Yet the same system has drawn criticism. In April 2025, a Texas-based company sued Tether after $44.7 million was frozen at the request of Bulgarian police, arguing that proper international procedures had not been followed.

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Circle’s approach is in contrast, with USDC freezes often following explicit legal or regulatory triggers, such as court orders or sanctions lists. Data from the chain shows that fewer events arrive in batches than in a steady stream. Once an address is blocked, the funds remain frozen until regulatory approval is granted, with no option to burn and reissue.

Why the gap matters for stablecoin adoption

The timing of this report is notable as Circle moves deeper into regulated markets. Earlier this month, the company announced an expanded partnership with Bybit to make USDC a standard stablecoin for the exchange’s trading, payment and savings products. The strategy relies heavily on predictability and compliance, qualities that institutions often prefer.

At the same time, recent incidents underline the value of quick action. After a trader lost nearly $50 million in USDT due to address poisoning a few days ago, former Binance CEO Changpeng Zhao renewed calls for wallet-level protection and shared blacklists. Episodes like these explain why some users see Tether’s hands-on attitude as a practical defense, even as privacy concerns remain.

The data shows that stablecoin enforcement is no longer a niche topic as these tokens continue to enter the everyday financial sector, meaning the balance between user protection, legal certainty and centralized control will remain one of the most contentious questions in the sector heading into the new year.