TRON, stablecoin issuer Tether, and blockchain forensic firm TRM Labs unveiled a strategic partnership on September 10, launching the T3 Financial Crime Unit (FCU) to combat illegal USDT transactions on the TRON blockchain.
The collaboration uses advanced technology and law enforcement efforts to identify and dismantle criminal networks exploiting USDT for illegal activities.
TRON, TRM Labs, And Tether FCU’s Mission to Combat Financial Crime
According to the press release, the T3 Financial Crime Unit (FCU) is designed to disrupt criminal activities by using real-time data and advanced analytics to track illicit flows of USDT.
TRON founder Justin Sun commented, “By collaborating with TRM Labs and Tether, TRON ensures blockchain technology benefits society while making it clear that illicit activity won’t be tolerated.”
TRON’s expansive ecosystem, with over 240 million users and 8.4 billion transactions, is central to preventing the platform from becoming a hub for illicit activities.
TRON’s low fees and stability, though beneficial for legitimate users, have also drawn the attention of criminals such as terrorists, money launderers, and scammers.
Cryptonews reported in March that USDT was involved in over $19 billion worth of illicit funds in 2023, surpassing other stablecoins due to its popularity in terrorist financing. TRON was responsible for 45% of all illicit crypto transactions, rising from 41% the previous year.
Tether USDT is now the preferred stablecoin for terrorist financing, outstripping USD Coin (USDC), which had $428.9 million in illicit volume.
The increasing prevalence of illegal USDT transactions led to the formation of the T3 FCU. The unit has already frozen over $12 million worth of USDT linked to scams, including blackmail and fraud schemes.
Global law enforcement agencies from the U.K., U.S., and Australia have collaborated with the unit, which has identified 11 victims, with more likely to be uncovered as investigations continue.
USDC TRON Risks Concern And Tether’s Dominance Despite Challenges
In a related development, Circle, the issuer of USDC, announced earlier this year that it would cease minting USDC on TRON.
Circle cited risk management concerns, aligning with broader regulatory scrutiny surrounding TRON’s alleged involvement in money laundering schemes.
This comes as the non-profit watchdog Campaign for Accountability sent a letter to U.S. Senators Elizabeth Warren and Sherrod Brown, implicating Circle in facilitating terrorist funding, with specific references to transactions conducted on the TRON blockchain.
Despite these concerns, TRON continues to play a leading role in the stablecoin market, with Tether actively issuing USDT on the network.
In August, Tether minted an additional $1 billion in USDT on the TRON blockchain, further cementing TRON’s role in global stablecoin circulation.
This brings Tether’s total USDT minting for the year to $33 billion, with 19 billion minted on TRON and 14 billion on Ethereum.
TRON’s fixed transaction fee of $1 has made it the leading blockchain for USDT transactions, with a circulating supply of $60 billion on the network.
The post TRON Partners with Tether to Fight Illicit USDT Transactions appeared first on Cryptonews.
