In a groundbreaking collaboration, the T3 Financial Crime Unit—comprised of the Tron blockchain, Tether, and TRM Labs—has successfully frozen $26.4 million in cryptocurrency linked to a major European money laundering scheme. This operation, conducted in partnership with Spanish law enforcement, marks a significant step in combating cross-border financial crime.
The funds were traced to a criminal organization that used both cash and cryptocurrency to launder illicit profits. Leveraging advanced blockchain intelligence tools from TRM Labs, the T3 Unit analyzed and flagged the group’s wallets for illegal activities. These efforts were supported by Know Your Customer (KYC) data from service providers, enabling authorities to track down and freeze the assets.
This milestone is the largest coordinated freeze since the T3 Financial Crime Unit’s inception in August 2024. In its first year alone, the unit recorded $126 million in frozen funds. Tron, which hosts $60.8 billion in USDT (roughly 51% of all USDT in circulation), has been instrumental in these efforts. The blockchain’s focus on security has reduced illicit transaction volumes by an estimated $6 billion.
Tether’s USDT token, often misused by bad actors, has also been at the center of the crackdown. Tether CEO Paolo Ardoino emphasized the company’s commitment to combating abuse, citing past actions such as freezing $225 million in USDT linked to pig butchering scams. Ardoino warned that criminals misusing Tether’s services face significant risks.
According to Chris Janczewski, head of global investigations at TRM Labs, the largest source of frozen funds involved “money laundering as a service,” where bad actors hire entities on the dark web to launder illicit funds. Other cases uncovered by the unit included investment scams, terrorism financing, illicit drug trade, hacks, blackmail scams, and violent crime.
The fight against crypto-related crime is intensifying as authorities and blockchain firms work to outpace evolving criminal tactics. Some illicit actors are now turning to alternative solutions, such as launching their own stablecoins, to evade detection. A notable example is Huione, a Chinese-language marketplace tied to illicit activities, which recently launched its stablecoin, USDH, and an independent chat service to reduce reliance on third-party platforms like Telegram and Tether.
This latest operation underscores the growing importance of public-private partnerships in securing the blockchain ecosystem. By combining the resources and expertise of Tron, Tether, and TRM Labs, the T3 Financial Crime Unit is setting new benchmarks for tackling financial crime in the digital age. The success of this initiative sends a clear message: illicit actors will face increasing difficulty in exploiting blockchain networks for illegal activities.
