Tether and Tron have launched the T3 Financial Crime Unit, in partnership with TRM Labs, to combat crime related to USDT, strengthening the collaboration between the private sector and public authorities.
Tron, the leader of USDT with 51% of issued stablecoins, has already frozen $12 million in USDT through this unit, putting an end to activities such as fraud and blackmail.
This security initiative comes at a time when stablecoins are under increased scrutiny, particularly following accusations of money laundering in Southeast Asia.
In a context where the regulation of the crypto sector is becoming a priority, Tether and Tron have just launched a major initiative to combat illegal activities on the blockchain. In collaboration with TRM Labs, a company specializing in blockchain intelligence, these companies have founded the T3 Financial Crime Unit (T3 FCU), a unit dedicated to fighting financial crime involving the USDT stablecoin.
Objectives of T3 FCU: Uniting the Public and Private Sectors Against Illicit Activities
This initiative marks a turning point in securing the crypto ecosystem, particularly for USDT, which is often used for malicious purposes.
The establishment of the T3 FCU aims to strengthen collaboration between the private sector and public authorities to identify and put an end to criminal transactions on the Tron blockchain, where the USDT stablecoin is most utilized. This financial crime unit focuses on detecting fraud, theft, cybercrime, sanctions evasion, and even terrorist financing.
Tron: Undeniable Leader of USDT
The choice of Tron to host this unit is not insignificant. With over $60.8 billion of USDT in circulation on its blockchain, Tron now represents 51% of the total USDT stablecoins issued, far surpassing Ethereum and other networks. This market dominance reinforces the need for Tron to proactively address the risks of criminal activity.
In the first few weeks since its launch, the T3 FCU has already proven its effectiveness by facilitating the freezing of $12 million in USDT associated with activities such as blackmail, investment fraud, and other scams.
TRM Labs and Tether: Partnership for a More Secure Blockchain
TRM Labs brings its technical expertise in combating financial crime, while Tether, the issuer of USDT, participates in this alliance through its external investigations team. The combination of Tron and TRM Labs’ technical skills, coupled with Tether’s experience in managing investigations into suspicious transactions, serves as a strategic lever to stem criminal activities.
According to Justin Sun, founder of Tron, this collaboration sends a strong message to the industry: “Blockchain technology should be used to improve the world, not to encourage illegal practices. We will not tolerate the malicious use of our networks.“
The Context: An Evolving Environment
The launch of the T3 FCU comes at a time when stablecoins, particularly USDT, are increasingly scrutinized. In February 2024, Circle, the issuer of USDC and a direct competitor to USDT, stopped supporting the Tron blockchain. This decision followed a report by the United Nations that identified USDT as a major vector for money laundering in Southeast Asia.
In response to these accusations, Tether reaffirmed its commitment to working with authorities and emphasized that USDT is traceable, unlike other traditional payment methods. Despite the criticisms, Tether has continued to actively support the Tron network, even increasing the amount of USDT issued on the blockchain by an additional $10 billion since February 2024.
