Tether's Growing Role in Crypto Enforcement Actions

Tether has become increasingly involved in enforcing regulations within the cryptocurrency space through its USDT stablecoin. In the last 30 days, BlockSec's data shows that over $500 million worth of USDT was frozen on the Ethereum and Tron networks. This trend is not isolated to just a few instances but rather part of a larger pattern of Tether intervening in high-risk transactions flagged by authorities.

According to BlockSec's analysis, in 2025, Tether blacklisted over 4,163 unique addresses across both Ethereum and Tron, resulting in the freezing of $1.26 billion worth of USDT. It is noted that once an address is frozen, it rarely gets removed from the blacklist.

Furthermore, a separate study revealed that between 2023-2025, Tether immobilized approximately $3.3 billion across 7,268 addresses, which is significantly higher than rival stablecoin issuer Circle over the same period.