The T3 Financial Crime Unit will work to reduce criminal activity associated with USDT on Tron, collaborating with law enforcement agencies to hold criminals accountable and make victims whole.
The largest stablecoin issuer, Tether, Justin Sun-created Tron, and blockchain intelligence platform TRM Labs have collaborated to launch the T3 Financial Crime Unit (T3 FCU). The alliance will allow Tether to identify and report crime-related USDT transactions on the Tron network.
The Majority of USDT in Supply Circulates on Tron
Tron houses the largest number of USDT tokens out of any blockchain, with over $60.7 billion worth of USDT circulating on the network. That amounts to 51% of all USDT supply, which stands at a whopping $118 billion. Furthermore, 45% of all illicit crypto fund flow occurred over Tron in 2023 according to TRM Labs. A massive portion of that is facilitated by the USDT stablecoin. With TRM Labs’ expertise in detecting ill-gotten asset movements, this initiative will allow Tether and Tron to combat crime that harnesses their technologies.
In a joint statement issued by the companies behind the T3 FCU, Justin Sun mentioned, “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.”
Tron and Tether have been scrutinized by the United Nations Office for Drugs and Crime for the abundance of criminal activity finding its way to the network to use the stablecoin. Circle even stopped USDC support on Tron because the agency called both the Web3 native firms out. Tether defended itself by claiming that it has worked with authorities to freeze funds and hold criminals responsible.
Keeping in line with that sentiment, Tether CEO Paulo Ardoino said in the announcement, “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.” Chris Janczewski, head of global investigations at TRM Labs, stated, “TRM is proud to collaborate with TRON, Tether, law enforcement, and others who are committed to helping build a safer blockchain industry for all.”
The T3 FCU, in its first week of operations, has already secured $12 million in USDT from “a blackmail scam, an investment fraud scheme, and others.”
