The T3 Financial Crime Unit (T3 FCU), a joint crypto crime-fighting initiative backed by Tether, TRON and TRM Labs, says it has frozen more than $450 million in digital assets connected to suspected criminal activity since launching in 2024.
According to details shared on Thursday, the unit has worked with law enforcement agencies across 23 jurisdictions to track and freeze funds tied to exchange hacks, drug trafficking, terrorist financing, North Korea-linked operations, kidnappings and violent crypto-related extortion attacks known as “wrench attacks.”
What is T3 FCU?
The T3 Financial Crime Unit is a joint initiative between @trondao, @tether, and @trmlabs focused on disrupting illicit activity across the digital asset ecosystem, particularly tied to the use of USDT on TRON.
Since launch, it has become a working model for… pic.twitter.com/JC6Gw1BE4y
— T3 Financial Crime Unit (@T3_FCU) May 14, 2026
The task force focuses mainly on illicit activity involving USDT on the TRON blockchain, one of the largest networks used for stablecoin transfers globally. T3 FCU said several emergency freeze requests were executed within 24 hours to stop suspicious transactions before funds could be moved further.
The group also revealed that it intercepted 43.9% more illicit crypto proceeds in 2025 compared to the previous year, showing a sharp rise in enforcement activity as authorities intensify pressure on stablecoin issuers and blockchain firms to improve compliance systems.
Crypto crime pressure grows across Stablecoin networks
The latest figures come amid growing concerns over rising criminal activity in the digital asset sector. Blockchain analytics firm TRM Labs estimates that illicit crypto flows climbed to a record $158 billion in 2025, increasing scrutiny on major blockchain networks and stablecoin providers.
Earlier this year, the Financial Action Task Force (FATF) described T3 FCU as an “invaluable resource” for global law enforcement and highlighted the initiative as a strong example of public-private cooperation in tackling financial crime involving crypto assets.
The report adds to ongoing debates around the balance between blockchain privacy and regulatory oversight, especially as authorities push for faster asset freezes and transaction monitoring.
Tether and TRON face questions over freezing powers
The announcement also follows data from blockchain security firm BlockSec, which recently reported that over $500 million in USDT was frozen across different blockchain networks over 30 days.
Because Tether issues USDT through a centralized system, the company has the ability to freeze funds directly through blacklist functions built into its smart contracts. Once suspicious wallet addresses are identified on networks such as TRON, Tether can block those wallets from sending, receiving or moving tokens, effectively locking the assets out of circulation.
The mechanism has become one of the company’s main tools in responding to crypto-related crimes, especially in cases involving hacks, scams, ransomware attacks and terrorist financing.
Beyond the T3 initiative, Tether has expanded coordination with agencies, including the U.S. Secret Service and the FBI, to combat illicit crypto activity. According to the company, these collaborations have contributed to more than $4.4 billion in total frozen assets across its operations.
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