TRON teams up with Chainalysis to monitor USDT transactions

TRON, Tether, and TRM Labs have established the T3 Financial Crime Unit to collaborate to combat illegal activities related to USDT on the TRON blockchain.

Blockchain network TRON, stablecoin issuer Tether, and blockchain forensics firm TRM Labs have joined forces to form the T3 Financial Crimes Unit, an alliance focused on preventing illicit activity linked to USDT on the TRON blockchain.

#TRON, @Link_toAnd @trmlabs Today, we announced that we have joined forces to establish the T3 Financial Crimes Unit, a first-of-its-kind effort aimed at facilitating public-private collaboration to combat illicit activities related to the use of USDT on the TRON blockchain. pic.twitter.com/156pMChPra

— TRON DAO (@trondao) September 10, 2024

With the latest initiative, T3 FCU aims to use data, technology, and deep collaboration with law enforcement to disrupt malicious activity. As of August, TRON hosts over 240 million user accounts and processes over 8.4 billion transactions, according to data from TRONScan.

However, the same features that make USDT attractive to legitimate users on TRON — low fees, stability, and ease of use — have also attracted terrorists, money launderers, and scammers. Data from TRM Labs’ “Illicit Crypto Economy” report shows that USDT holds over $19 billion in illicit funds, outpacing other stablecoins.

TRM Labs noted that USDT has “solidified its position as the preferred currency for use by terrorist financing organizations.” In comparison, USD Coin (USDC) recorded just $428.9 million in illicit volume. TRM Labs’ research also found that TRON facilitated 45% of all illicit crypto transactions in 2023, up from 41% the previous year. In comparison, Ethereum and Bitcoin accounted for 24% and 18%, respectively.

The T3 initiative has proven effective, freezing more than $12 million in USDT linked to scams including extortion and fraud schemes. So far, 11 victims have been identified, with more expected as investigations progress. Chris Janczewski, TRM’s head of global investigations, told Forbes that the effort involves agencies in the UK, US, and Australia to curb illicit activity, emphasizing the importance of global collaboration.