Tether Join Forces with TRON to Combat the Use of USDT for Illicit Activities

Leading stablecoin issuer Tether has announced a partnership with TRON and TRM Labs to establish a task force aimed at curbing the illicit use of USDT on the TRON blockchain.

Dubbed the T3 Financial Crime Unit (T3 FCU), the initiative leverages the expertise of the stablecoin issuer’s external investigations team, TRM Labs’ anti-financial crime expertise, and the technical expertise of TRON to create a safer and more secure crypto community.

USDT has been a target for criminals due to its stability and ease of use. According to TRM Labs’ “Illicit Crypto Economy” report, USDT accounted for more than $19 billion in illicit funds, outpacing other stablecoins.

Tether Partners with TRON and TRM Labs

In a Tuesday press release, Tether said the establishment of the T3 FCU was a significant step toward limiting the ability of malicious actors to launder and utilize proceeds of crime using USDT, safeguarding TRON’s integrity.

Furthermore, the unit will cooperate with industry leaders and law enforcement to protect users from scams and other illicit activities.

“At Tether, safeguarding the integrity of the blockchain ecosystem is a top priority and a responsibility we embrace being a key player in the digital asset space. This collaboration underscores our dedication to joining industry leaders and law enforcement to combat illicit activity, ensuring a secure environment for all users,” Paolo Ardoino, CEO of Tether said.

Per the statement, TRM Labs will use its intelligence suite to provide ongoing support to Tron and Tether in identifying transactions that have a connection to alleged illegal activities such as terrorism, sanctions evasion, theft, hacking, cybercrime, and fraud.

“As adoption of stablecoins continues to rise, it’s critical that key industry players proactively evolve their capabilities to combat illicit activity and ensure a safe and secure environment,” Chris Janczewski, head of global investigations at TRM Labs stated.

Notably, T3 FCU has collaborated with law enforcement to freeze over 12 million USDT linked to a blackmail scam and investment fraud since it’s inception. This record underscores the unit’s dedication to ensuring a secure and prosperous digital asset industry.