Tether froze $1.26 billion in USDT across 4,163 addresses in 2025, with 55.6% of these funds permanently destroyed, highlighting intensified regulatory enforcement in the stablecoin sector. Only 3.6% of blacklisted addresses were unfrozen during the year, underscoring the challenges faced by USDT users in navigating compliance risks. The majority of frozen addresses were on the TRON network, accounting for 84.2% of cases, reflecting a preference for chains with lower transaction costs. July saw a peak in freezing activity, linked to the GENIUS Act and global anti-terrorism efforts. Tether's operations are expected to tighten further, with compliance becoming mandatory by mid-2028. To mitigate risks, users are advised to employ KYT tools like BlockSec Phalcon Compliance for proactive risk management. This includes pre-screening transactions, real-time monitoring, and maintaining compliance documentation to enhance the chances of successfully appealing mistaken freezes.