Why Tether Froze 30x More Crypto Than Circle: AMLBot Report

Tether froze $3.3B in crypto assets, 30x more than Circle’s $109M, using proactive methods like freeze, burn, and reissue.

A recent AMLBot report shows that Tether froze around $3.3 billion in crypto assets between 2023 and 2025. This is in stark contrast to Circle’s $109 million.

Tether’s aggressive approach to freezing crypto raises questions about privacy, while Circle’s more conservative model follows legal orders. These differences are highlighted by the unique methods used by each company.

Tether’s Aggressive Freezing Strategy

Tether froze more than $3.3 billion in assets across multiple blockchains. A significant portion of this amount was on the TRON network.

In total, Tether blacklisted 7,268 addresses, including over 2,800 linked to law enforcement requests. The company often freezes assets without waiting for court orders, acting when it believes it is necessary to protect users or prevent criminal activity.

AMLBot reported that between 2023 and 2025, Tether and Circle froze approximately $3.3 billion and $109 million in crypto assets via their freezing mechanisms—a roughly 30x gap. The report said Tether blacklisted 7,268 addresses during the period, with over 2,800 handled in… pic.twitter.com/5ro5R81Ueg

— Wu Blockchain (@WuBlockchain) December 25, 2025

Tether’s freezing mechanism involves more than just halting transactions. It also includes a process of burning and reissuing tokens, which allows for the return of funds to victims.

In late 2025, over 25 million tokens were destroyed as part of this process. While this system helps recover stolen funds, it raises concerns about Tether’s centralized control and the risks of potential censorship.

Circle’s Conservative Freezing Approach

Circle, by contrast, takes a much more conservative approach. The company froze just $109 million in USDC, across 372 addresses, following court orders or legal requirements.

Circle does not use the burn-and-reissue process that Tether employs. Once funds are frozen, they stay frozen until a legal decision is made to unfreeze them.

From 2023–2025, Tether froze ~$3.3B in crypto assets versus $109M by Circle, a ~30x gap.

Tether blacklisted 7,268 addresses, often working with U.S. law enforcement, and used a freeze → burn → reissue process, with 53% of frozen USDT on Tron.

Circle took a stricter route,… pic.twitter.com/p3wki82iFG

— 0xMarioNawfal (@RoundtableSpace) December 25, 2025

This model results in fewer but larger freezing events.

Circle’s approach is more transparent and predictable, as it only acts when legally obligated. This makes Circle’s actions less frequent but anchored to formal legal and regulatory requirements.

As a result, Circle avoids the privacy concerns tied to Tether’s more frequent freezes and reissuances.

**Related Reading: **Tether Weighs Tokenized Equity for Investor Liquidity

The Difference in Freezing Mechanisms

The freezing mechanisms used by Tether and Circle differ significantly. Tether relies on a multi-signature wallet system, requiring multiple approvals before a freeze is executed.

This security model, while effective, can lead to delays in freezing assets. In some cases, this delay has allowed illicit actors to withdraw funds, resulting in losses of approximately $78 million since 2017.

Circle’s freezing process is more straightforward, as it only occurs following a formal legal order. This leads to fewer freezing actions but also ensures that the process is more legally predictable.

While both companies are involved in freezing assets, Tether’s proactive freezing model creates a much higher volume of frozen assets compared to Circle’s reactive approach.