Pioneering initiative that aims to facilitate public-private collaboration to combat illicit activities associated with the use of USDT on the Tron blockchain.
Physical coins of the Tether stablecoin (USDT).
To facilitate the fight against crimes involving USDT transactions, Tether has entered into a partnership with Tron and the company TRM Labs. This is how the T3 Financial Crime Unit (T3 FCU) was created, a pioneering initiative in the global compliance market.
According to a statement on Tuesday (10), the pioneering initiative aims to facilitate public-private collaboration to combat illicit activities associated with the use of USDT on the Tron blockchain.
TRM Labs is a tool already in use by several countries to monitor cryptocurrency transactions. Recently, for example, the Argentine Federal Police arrested a Russian and issued a criminal report to a Brazilian.
Tether brings together companies to monitor USDT transactions: “more than 50% of movements occur on the Tron network”
Stating that the new partnership has already begun to bear fruit for the future of the cryptocurrency market, Tether indicated that it already helps in anti-crime operations. “In the weeks since its launch, the initiative, in collaboration with law enforcement, has facilitated the freezing of over USDT 12 million in funds associated with a blackmail scam, an investment fraud scheme, and others,” the note reads.
The so-called first private sector financial crimes unit to combat cryptocurrency crimes will focus on the world's largest stablecoin. This is because, in terms of volume, Tether usually moves millions of dollars a day, even more than Bitcoin and Ethereum, which have higher market capitalizations.
In any case, more than 50% of the volume passes through the Tron network, which as of Tuesday is the tenth most valuable cryptocurrency on the market. Thus, USDT indicated that by monitoring transactions, it will protect the Tron network ecosystem from scammers and other malicious actors.
“However, the same features that make USDT on TRON attractive to legitimate users — low fees, lack of volatility, and ease of use — have also attracted the attention of scammers, terrorist financiers, and other threat actors.”
What do executives from the three companies that created the first private unit against cryptocurrency crimes say?
“TRON was founded on the belief that technology can be used for good and to empower people around the world,” said Justin Sun, founder of TRON blockchain. “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 activities are not welcome in our industry.”
“At Tether, protecting the integrity of the blockchain ecosystem is a top priority and a responsibility we embrace as a key player in the digital asset space. This commitment drives us to take proactive steps to help maintain the security and trustworthiness of the ecosystem,” said Paolo Ardoino, CEO of Tether. “We are proud to have worked with TRM Labs and TRON on this pioneering effort. This collaboration underscores our dedication to joining forces with industry leaders and law enforcement to combat illicit activity while ensuring a safe environment for all users.”
“As stablecoin adoption continues to grow, it is essential that key industry participants proactively build their capabilities to combat illicit activity and ensure a safe and secure environment,” said Chris Janczewski, Head of Global Investigations at TRM Labs. “TRM is proud to partner with TRON, Tether, law enforcement and others who are committed to helping build a safer blockchain industry for everyone.”