Centralized risks of stablecoins: Tether's USDT frozen with over $182 million in a single day

DefiOldTrickster · 2026-01-12T20:32:05+00:00

Stablecoins face centralization risks. According to Chainalysis data, it is estimated that by 2025, stablecoins will account for 84% of illegal transactions. Tether recently froze over $182 million in assets, highlighting its control over user assets. From 2023 to 2025, Tether has frozen approximately $3.3 billion in assets, indicating a high level of market centralization and heavy reliance on it, which could trigger an overall ecosystem crisis.

DefiOldTrickster

2026-01-12 20:32:05

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Stablecoins, as a crucial infrastructure in the cryptocurrency ecosystem, have long faced centralization risk dilemmas. According to the latest data from Chainalysis, by the end of 2025, stablecoins accounted for 84% of illegal transaction volume, revealing the complexity of virtual asset regulation challenges.

Record High in Single-Day Freezing Volume

According to blockchain monitoring by Whale Alert, on January 11, within 24 hours, Tether implemented fund freezes on 5 wallet addresses on the Tron chain, involving over $182 million. This large-scale banning action once again highlights the absolute control of USDT issuers over user assets.

The Logic Behind Tether’s Freezing Authority

Although blockchain technology should provide censorship resistance, USDT, as a highly centralized stablecoin, has a freeze function set at the smart contract level, allowing Tether to directly ban assets of specified addresses. The company has maintained long-term cooperation with US law enforcement agencies, executing asset freezes upon law enforcement requests.

Statistics from AMLBot reveal the scale of this authority: from 2023 to 2025, Tether has frozen approximately $3.3 billion in assets, involving 7,268 blacklisted wallet addresses. Behind these figures reflects the deep centralization of the stablecoin market.

Market Status and Risk Reminder

Despite numerous controversies, USDT’s market cap still reaches $187 billion, controlling 60% of the stablecoin market share. This market concentration means the entire ecosystem is highly dependent on a single issuer. If Tether’s decision-making changes or it faces regulatory crises, it could trigger a chain reaction across the entire crypto asset ecosystem.

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