Tether partners with Tron and TRM Labs to launch the T3 Financial Crimes Unit (T3 FCU), focused on combating illicit activities involving USDT on the Tron blockchain.
On September 10, Tether announced a partnership with Justin Sun’s Tron network and blockchain intelligence firm TRM Labs to form the T3 Financial Crimes Unit (T3 FCU). The unit’s goal is to increase cooperation in the fight against illicit activities using USDT on the Tron blockchain.
T3 FCU will leverage TRM Labs’ advanced technology and anti-financial crime expertise, combined with technical knowledge from Tron and Tether’s external investigative team. The unit’s focus will be on identifying transactions related to terrorism, sanctions evasion, theft, cyberattacks, fraud, and other illegal activities.
In just the first few weeks of operations, T3 FCU has coordinated with law enforcement to freeze over 12 million USDT related to extortion, investment fraud, and other violations.
Tron's participation in T3 FCU is a strategic move, as the network plays an important role in issuing USDT. As of September 10, Tron is the largest USDT-issuing blockchain, with a total circulating supply of USDT reaching $60.8 billion, accounting for 51% of the total $118 billion USDT in circulation.
USDT on Tron, Ethereum, Cosmos, and EOS as of September 10, 2024. Source: Tether Transparency
Justin Sun, founder and CEO of Tron, said the partnership will ensure blockchain technology is used for positive purposes and send a strong message that illegal activities are not tolerated in the cryptocurrency industry.
However, the growing popularity of USDT on Tron has also raised concerns. In February 2024, the United Nations Office on Drugs and Crime for Southeast Asia and the Pacific identified USDT as a major tool used for money laundering in the region, specifically highlighting the rise of USDT on the Tron blockchain.
Tether has disputed the report, claiming that the UN analysis ignored USDT's transparency and failed to acknowledge Tether's efforts to cooperate with global law enforcement. In contrast, USDT's main competitor USDC stopped supporting the Tron network in February 2024, citing the reliability, transparency, and security of USDC.
Despite the concerns, Tether continues to issue new USDT on the Tron blockchain. Since February 2024, USDT on the Tron network has increased by at least $10 billion, representing a growth of more than 20%.
