Trusted

Tether, Tron, and TRM Labs Partner to Fight Criminal USDT Activity

2 mins
Updated by Daria Krasnova
Join our Trading Community on Telegram

In Brief

  • Tether, Tron, and TRM Labs form T3 Financial Crime Unit to combat criminal USDT activity on the TRON blockchain.
  • T3 FCU collaborates with law enforcement, recovering over 12 million USDT tied to blackmail, scams, and fraud.
  • Tether's USDT is targeted by illicit actors due to its high liquidity, low fees, and widespread use on the TRON network.
  • promo

Tether, the largest stablecoin issuer, has partnered with Tron, one of the top blockchains, and blockchain intelligence firm TRM Labs to tackle criminal activity involving USDT.

This initiative, known as the T3 Financial Crime Unit (T3 FCU), marks a pioneering public-private collaboration focused on addressing illicit activities associated with the use of USDT on the TRON blockchain.

Tether, Tron, and TRM Unite to Combat USDT Crimes

A 2023 report from TRM Labs revealed that the Tron blockchain accounted for nearly 45% of all illicit crypto volume. In response, Tron, founded by Justin Sun, has teamed up with TRM Labs and USDT issuer Tether to form a task force aimed at combating financial crime.

Indeed, Tether and Tron’s prominence in the crypto space has increasingly attracted scammers, terrorist financiers, and other threat actors. Over 50% of USDT’s circulating supply operates on the Tron blockchain, which is known for its high throughput and low transaction costs, making it attractive to both legitimate users and bad actors alike.

“The same features that make USDT on TRON attractive to legitimate users — low fees, lack of volatility, and ease of use — have also drawn the attention of scammers, terrorist financiers, and other threat actors,” read the release.

Read more: 15 Most Common Crypto Scams To Look Out For

The blockchain intelligence firm also disclosed that scams and frauds accounted for approximately a third of all crypto crimes last year. Tether’s USDT stablecoin dominated terrorist financing on Tron.

“As adoption of stablecoins continues to rise, it’s critical that key industry players proactively evolve their capabilities to combat illicit activity and ensure a safe and secure environment,” Chris Janczewski, Head of Global Investigations at TRM Labs, said.

Similarly, Forbes reported in January that USDT has become a “preferred choice” among money launders and scammers. The report cited a publishing from the United Nations Office on Drugs and Crime (UNODC). Tether challenged the UN report, citing its role in aiding developing economies in emerging markets.

Read more: Crypto Project Security: A Guide to Early Threat Detection

These cases underline the importance of initiatives like the T3 FCU, especially as legal and regulatory scrutiny intensifies around digital assets used for illicit purposes. The financial crime unit also reinforces Tether’s firm stance against cybercrime.

Earlier this year, Tether froze $5.2 million in USDT linked to scams in May. In November 2023, it also froze $225 million in USDT associated with a Southeast Asian human trafficking syndicate — marking the largest crypto freeze in history.

Top crypto projects in the US | October 2024
Exodus Exodus Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024
Exodus Exodus Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Lockridge-Okoth.png
Lockridge Okoth
Lockridge Okoth is a journalist at BeInCrypto, focusing on prominent industry companies such as Coinbase, Binance, and Tether. He covers a wide range of topics, including regulatory developments in decentralized finance (DeFi), decentralized physical infrastructure networks (DePIN), real-world assets (RWA), GameFi, and cryptocurrencies. Previously, Lockridge conducted market analysis and technical assessments of digital assets, including Bitcoin and altcoins such as Arbitrum, Polkadot, and...
READ FULL BIO
Sponsored
Sponsored