Key Points
- Tether, TRON, and TRM Labs announce a new original collaboration in combating crypto crime.
- The T3 Financial Crime Unit (T3 FCU) aims to combat illicit activity associated with the use of USDT on TRON.
Today, September 10, Tether, TRON, and TRM Labs announced they have joined forces to establish an original unit for combating crypto crime.
The T3 Financial Crime Unit (T3 FCU), is a first-of-its-kind initiative that aims to facilitate public-private collaboration to combat illicit activity associated with the use of USDT on the TRON blockchain.
Combating Crypto Crime on TRON With T3 FCU
This new collaboration unites the following:
- The anti-financial crime expertise of TRM Labs, a leading blockchain intelligence firm
- The technical expertise of TRON, a leading global blockchain and DAO
- External investigations team at Tether, the largest company in the digital asset industry
According to the official announcement, the aim of this new collaboration is to create a safer and more secure crypto community for everyone.
TRM will provide ongoing support to TRON and Tether to identify transactions that have a connection to alleged illegal activities such as:
- Terrorism
- Sanctions evasion
- Theft
- Hacking
- Cybercrime
- Fraud
TRM will leverage its technology and global network of expert investigators to generate intelligence. This will support TRON and Tether’s efforts to disrupt criminal activity and help law enforcement around the world.
Freezing of Over 12M USDT in Scam and Fraud Funds
The original release notes that in the weeks since the initiative was launched in collaboration with law enforcement, they facilitated the freezing of over 12 million USDT in funds associated with a blackmail scam, an investment fraud scheme, and more.
According to the data, police are currently aware of at least 11 victims impacted by the scams and expect more victims to be identified as the investigation unfolds.
USDT on TRON Draws Bad Actors’ Attention
USDT on TRON has features that make the stablecoin attractive for legitimate users. These include the following:
- Low fees
- Lack of volatility
- Ease of use
USDT stablecoin offers a stable store of value and enables seamless movement of funds between platforms.
USDT has over $117 billion in market cap and more than 50% of its circulating supply on the TRON blockchain. and it’s a key element that facilitates transactions and liquidity.
But, all these features have also drawn attention from bad actors including scammers, terrorist financiers, and others.
As the TRON blockchain popularity and user base grow, drawn by high throughput and low transaction costs, so does the exposure to criminal elements.
Establishing T3 FCU is an important step towards ensuring the ability of malicious actors to launder and use the proceeds of crime, safeguarding the integrity of the TRON blockchain.
Promoting Security and Prosperity Across TRON
The T3 FCU aims to promote security and prosperity across the TRON network and beyond.
Justin Sun, Tron’s founder, said that the network originated with the belief that technology can be used for good and to empower people globally.
This new collaboration allows Tron to help make sure that blockchain technology is making the world a better place, sending a clear message that illicit activity is now welcome in the crypto industry.
Sun also announced the new collaboration via his X account.
Paolo Ardoino, Tether’s CEO, said that safeguarding the integrity of the blockchain ecosystem is a top priority and a responsibility that they embrace and this commitment drives them to take proactive measures in helping maintain security and trustworthiness to the ecosystem.
Chris Janczewski, head of global investigations at TRM Labs, notes that as the adoption of stablecoins is on the rise, key industry players must boost their capacities to combat illicit activity and ensure a safe and secure environment.
