n a pivotal movement, the USDT stablecoin issuer, Tether, has joined forces with the Tron network and blockchain intelligence firm TRM Labs to develop an independent unit for financial crime-fighting.
The creation of the T3 Financial Crime Unit was announced on September 10, 2024, and it will employ public-private cooperation in combating illicit activities related to USDT occurring on the Tron blockchain.
The T3 FCU combines TRM Labs' expertise in anti-financial crimes with proprietary technology, together with the technical acumen of Tron and the external investigations team at Tether.
The new unit will be responsible for identifying and freezing transactions that have been involved in various crimes like terrorism, evasion of sanctions, theft, hacking, cybercrime, and fraud.
Early Success and Frozen Funds
Since its official launch, T3 FCU has already achieved quite a bit. Working with law enforcement, the unit has frozen over $12 million of USDT funds connected to criminal activities, such as a blackmail scam and an investment fraud scheme.
While it’s expected that T3 FCU would eventually be involved with Tron, due to its importance in the USDT ecosystem; as of September 10, 2024, the Tron blockchain is the largest network for USDT, with $60.8 billion in circulation—touching 51% of current USDT circulation.
Industry and Competition Reaction
The T3 FCU was established amidst increasing scrutiny against the misuse of stablecoins. USDC, a rival of USDT, pulled back its support for the Tron network last February 2024 due to an outcry over trust and transparency.
This is after a report by the United Nations Office for Drugs and Crime revealed that USDT had grown in popularity on the Tron blockchain and was one of the cryptos favored for money laundering.
The T3 FCU is a huge leap in trying to put together a more secure and trustful world of cryptocurrency. The collective work of Tether, Tron, and TRM Labs demonstrates their commitment to fighting illicit activities and fostering responsible use of blockchain technology.
