84% of illegal transactions use stablecoins. Why has Tether become a regulatory favorite and a risk focal point?

Tether freezes $182 million USDT in a single day, reflecting not only an upgrade in law enforcement力度 but also exposing the biggest contradiction in the cryptocurrency world: stablecoins, originally created for decentralization, have now become the most centralized assets. This freeze involves five Tron chain wallets, with individual amounts ranging from $12 million to $50 million, exemplifying Tether’s routine enforcement actions.

The Double-Edged Mirror of Power and Risk

Law enforcement system behind the scale of freezing

According to the latest news, Tether froze over $182 million worth of USDT within 24 hours on January 11. This is not an isolated incident. According to AMLBot reports, between 2023 and 2025, Tether has frozen approximately $3.3 billion in assets, blacklisting 7,268 wallet addresses. What lies behind these figures? It is deep cooperation between Tether and the U.S. Department of Justice, FBI, and Secret Service.

Tether has the ability to instantly freeze funds at the smart contract level, meaning once funds are deemed illegal, they can be locked instantly and cannot circulate. This is a powerful tool against illegal fund flows but also a direct challenge to the ideals of decentralization.

The Centralization Reality of Stablecoins

Data speaks volumes. Although cryptocurrencies are inherently resistant to censorship, stablecoins holding 60% of the market share are highly centralized. Take USDT as an example, with a current market cap of $18.671 billion, accounting for 60% of the stablecoin market. Such a large amount of assets is controlled by one company with the authority to freeze.

In comparison, according to information data, USDC is jointly issued by Circle and Coinbase, holding proper U.S. licenses, with reserves consisting of cash and short-term U.S. Treasuries, audited monthly by the Big Four, with reports fully公开. USDT’s reserves, on the other hand, include commercial paper and other relatively high-risk assets, with only quarterly limited audits. This difference is also reflected in historical performance: USDC only briefly de-pegged during the Silicon Valley Bank incident in 2023, recovering within hours; USDT has experienced multiple market panics due to reserve controversies.

The Truth About Illegal Fund Flows

Stablecoins becoming the main vehicle for illegal transactions

This is the most alarming data: according to Chainalysis statistics, by the end of 2025, stablecoins will account for 84% of all illegal transaction volume. In other words, among all cryptocurrencies, stablecoins have become the preferred tool for illegal fund flows.

Why stablecoins? The answer is simple. Unlike Bitcoin, stablecoins do not fluctuate, making them convenient for money laundering and illegal payments. USDT, with the highest liquidity and acceptance, naturally becomes the first choice. This creates a strange situation: the safest, most stable assets are being used most for unsafe purposes.

The Role Shift of Tether

Tether has evolved from a stablecoin issuer to a law enforcement collaborator. Recent reports indicate that Tether has established a partnership with the United Nations Office on Drugs and Crime (UNODC) to jointly combat cybercrime and human trafficking in Africa. This signals Tether’s proactive participation in global law enforcement.

Meanwhile, Tether has issued an additional $1 billion USDT in the past week. According to reports, Tether and Circle together issued a total of $3.75 billion in stablecoins last week. Such large-scale issuance is usually driven by market liquidity needs but also raises questions about reserve adequacy.

The Market’s New Perception of Stablecoin Security

Upgrading Risk Awareness

People used to choose stablecoins based solely on liquidity: the more liquid, the better. But now, that’s changing. An increasing number of traders and projects are paying attention to regulatory compliance, reserve transparency, and historical performance of stablecoins. This can be seen in discussions about “USDT vs USDC: which is safer.”

Newcomers may still be debating their choices, but seasoned players are adjusting their allocations. Those seeking low risk tend to prefer USDC, while those prioritizing liquidity choose USDT. This differentiation reflects the market’s re-pricing of stablecoin risks.

Opportunities for Decentralized Stablecoins

While Tether’s freezing power is a law enforcement tool, it has also sparked demand for decentralized stablecoins. The information mentions Lista DAO’s development of lisUSD, based on the Liquity model, introducing a rigid redemption mechanism to address the risks associated with centralized stablecoins. This is not just simple competition but a rethinking of the fundamental nature of stablecoins.

Summary

Tether’s freeze of $182 million in a single day may seem like an enforcement action, but it actually reflects deep changes in the crypto industry. Stablecoins have shifted from an ideal decentralized tool to the most centralized assets; from niche trading media to the main vehicle for illegal fund flows. This forces the market to reevaluate the essence of stablecoins.

The future landscape of stablecoins may look like this: centralized stablecoins (USDT/USDC) will continue to dominate due to liquidity and regulatory compliance but face increasingly strict oversight; decentralized stablecoins will find their niche in specific scenarios (such as DeFi native applications). Tether’s power and risks will ultimately drive the evolution of the entire industry.