Tether vs Circle: Contrasting Approaches to Stablecoin Freeze Policies

Source: CryptoNewsNet Original Title: Stablecoin Giant Tether Deals Major Blow to Illegal Activities! Millions of Dollars Frozen! Here Are the Details Original Link: https://cryptonews.net/news/security/32187677/ Stablecoin issuers Tether and Circle have implemented freeze policies against crypto assets linked to illicit activities, with results becoming apparent between 2023 and 2025.

According to the report, Tether blocked approximately $3.3 billion worth of crypto assets through its freeze mechanism during this period, while Circle’s total frozen amount remained at $109 million. These figures show a significant difference of approximately 30 times between the two companies.

Based on AMLBot data, Tether blacklisted 7,268 addresses during this period. More than 2,800 of these were blacklisted as part of operations conducted in coordination with US law enforcement.

The company aimed to return some funds linked to fraud and criminal proceeds to victims by removing them from the system through its “freeze + burn + re-issue” model. More than 53% of the frozen USDT assets were held on the Tron network.

Circle, by contrast, is taking a more cautious approach. The company has only frozen 372 addresses, totaling $109 million. Circle emphasized that these actions are carried out solely in accordance with court orders or regulatory directives, and that it does not resort to burning or re-issuing the frozen tokens.

Experts note that this differing approach between the two companies demonstrates the adoption of different strategies regarding regulatory compliance and crime prevention within the stablecoin ecosystem. Such practices are expected to become even more important in the coming period with increased oversight.