Tether, TRON and TRM Labs Establish First-Ever Private Sector Financial Crime Unit to Combat Crypto Crime

  tether.io 1 h

September 10, 2024 — Tether, TRON and TRM Labs today announced they have joined forces to establish the T3 Financial Crime Unit (T3 FCU), a first-of-its-kind initiative aimed at facilitating public-private collaboration to combat illicit activity associated with the use of USDT on the TRON blockchain. This novel collaboration brings together the anti-financial crime expertise of TRM Labs, a leading blockchain intelligence firm; the technical expertise of TRON, a leading global blockchain and DAO; and external investigations team at Tether, the largest company in the digital asset industry, to create a safer and more secure crypto community for all.

In the weeks since launch, the initiative, in collaboration with law enforcement, facilitated the freezing of over USDT 12 million in funds associated with a blackmail scam, an investment fraud scheme, and others. Police are aware of at least 11 victims impacted by the scams and expect to identify additional victims as the investigations unfold.

Stablecoins like USDT serve as the backbone of the digital asset industry, providing a stable store of value and enabling seamless movement of funds between platforms. With over $117 billion USD in market capitalization and more than 50% of its circulating supply running on the TRON blockchain, USDT is integral to facilitating transactions and liquidity. However, 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. And as the TRON blockchain’s popularity and user base grow, drawn by its high throughput and low transaction costs, so too does its uninvited exposure to these criminal elements. The establishment of the T3 FCU represents a significant step towards impeding the ability of malicious actors to launder and utilize the proceeds of crime, safeguarding the integrity of the TRON blockchain.

As part of the collaboration, TRM will provide ongoing support to TRON and Tether in identifying transactions that have a connection to alleged illegal activities such as terrorism, sanctions evasion, theft, hacking, cybercrime, and fraud. TRM will leverage its proprietary technology as well as its global network of expert investigators to generate intelligence. The work will support TRON’s and Tether’s efforts to disrupt criminal activity and aid collaborations with law enforcement around the world.

By collaborating to proactively identify and disrupt illicit activity, the T3 FCU aims to promote security and prosperity across the TRON network and beyond.

“TRON originated with the belief that technology can be used for good and to empower people across the globe,” said Justin Sun, founder of the TRON blockchain. “By collaborating with TRM Labs and Tether, TRON is helping to ensure that blockchain technology is used to make our world a better place, and sends a clear message that illicit activity is not welcome in our industry.”

“At Tether, safeguarding the integrity of the blockchain ecosystem is a top priority and a responsibility we embrace with being a key player in the digital asset space. This commitment drives us to take proactive measures in helping maintain the security and trustworthiness of the ecosystem,” said Paolo Ardoino, CEO of Tether. “We’re proud to have worked with TRM Labs and TRON in this pioneering effort. This collaboration underscores our dedication to joining with industry leaders and law enforcement to combat illicit activity, ensuring a secure environment for all users.”

“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,” said Chris Janczewski, head of global investigations at TRM Labs. “TRM is proud to collaborate with TRON, Tether, law enforcement, and others who are committed to helping build a safer blockchain industry for all.”

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