- Tether, Tron, and TRM Labs have helped freeze over $120 million linked to crime
- The three are part of the T3 Financial Crime Unit that helps dismantle crypto-based criminal networks
- The frozen funds are scattered “across five continents”
Tether, Tron, and TRM Labs have led other T3 Financial Crime Unit (T3 FCU) members in freezing over $120 million in USDT linked to crime. The funds were frozen “across five continents” and marks the unit’s enforcement victory less than five months since its launch in August last year. Tron’s founder Justin Sun said the unit makes criminals “think twice before using” the blockchain, indicating that crypto businesses are ready to work with law enforcement agencies to curb crypto-based crime.
T3 FCU Fights Illicit Actors Using USDT
According to a statement released by TRM Labs, the unit works with law enforcement agencies “to fight illicit actors using USDT on the Tron blockchain.” In its few months of operation, the unit has frozen $126 million.
The T3 Financial Crime Unit (T3 FCU)—a collaboration between @trondao, @Tether_to, and TRM Labs—has frozen more than USD 100 mil in criminal assets globally, passing a significant milestone in its fight against crypto-related financial crime. Learn more: https://t.co/rje54Wv9Gg pic.twitter.com/fmMmLvfgHq
— TRM Labs (@trmlabs) January 2, 2025
The group froze funds from scammers, money launderers, hackers, violent crimes, and illicit drugs. Money laundering crimes accounted for most of the funds at $65 million followed by investment scams at $36 million and illicit drugs at $11 million worth of USDT.
TRM Labs disclosed that the group responds to identified criminal activities or threats within five days, adding that T3 FCU has monitored over $3 billion in USDT and analyzed “millions of transactions.”
Collaboration Improves Transparency and Security
Tether CEO Paolo Ardoino said that Tether is committed to enhancing the integrity of the financial ecosystem. Ardoino also noted that T3 FCU’s achievements demonstrate the power of collaboration in redefining security, transparency, and accountability “in the digital asset space.”
This isn’t the first time Tether is working with law enforcement agencies to freeze illicit funds. In 2023, it froze over $800 million linked to criminal activities. In July last year, it froze another $30 million in USDT tied to Huione Guarantee.
With T3 FCU’s efforts bearing fruits a few months after launch, other blockchains and crypto platforms may join the unit to discourage malicious actors from using their platforms to move illicit funds.
