Blockchain network TRON, stablecoin issuer Tether, and blockchain intelligence firm TRM Labs have teamed up to establish a unit dedicated to combating illicit activities associated with Tether’s USDT on the TRON blockchain.
The new unit, tagged T3 Financial Crime Unit (T3 FCU), leverages TRM Labs’ expertise and close collaboration with law enforcement to achieve its aims.
TRM Labs, in a recent research report, claimed that USDT has become a preferred currency for terrorist financing, while USD Coin (USDC) recorded only $428.9 million in illicit transactions. The research report also indicated that TRON was involved in 45% of all illicit crypto transactions in 2023, up from 41% the previous year. In comparison, Ethereum and Bitcoin accounted for 24% and 18% of such transactions, respectively.
In a recent press release about the development, Tether noted that the T3 initiative has successfully frozen over 12 million USDT associated with scams, including blackmail and fraud. Eleven victims have been identified, with more expected as investigations continue.
According to Paolo Ardoino, CEO of Tether,
“Safeguarding the integrity of the blockchain ecosystem is a top priority for us. We are committed to proactive measures to maintain security and trustworthiness. Partnering with TRM Labs and TRON highlights our dedication to working with industry leaders and law enforcement to combat illicit activities and ensure a secure environment for all users.”
Chris Janczewski, TRM Labs’ head of global investigations, also highlighted the importance of international collaboration, noting that agencies from the U.K., U.S., and Australia have been involved in this effort to combat illicit activities.
Meanwhile, Tether has been expanding its partnerships and recently announced plans to launch a new stablecoin pegged to the United Arab Emirates dirham (AED). Partnering with UAE-based Phoenix Group and Green Acorn Investments, Tether aims to create a digital dirham fully backed by liquid reserves in the UAE. This stablecoin will adhere to Tether’s transparent reserve standards, ensuring stability and confidence in its value.
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