Tron, Tether and TRM Labs Start Financial Crime Fighting Force

As a researcher with years of experience in the crypto space, I find this recent collaboration between Tron, Tether, and TRM Labs to be a significant step forward in the fight against financial crime. Having closely followed the evolution of the Tron blockchain, it’s clear that addressing its high volume of illicit activities has been long overdue.

In a 2023 report from TRM Labs, it was revealed that approximately 45% of all illicit cryptocurrency transactions took place on the Tron blockchain. Now, the blockchain established by Justin Sun is collaborating with TRM Labs and Tether, the issuer of USDT, in a joint task force aimed at combating financial crimes.

TRON was born out of the idea that technology should be harnessed for positive change and to empower people worldwide,” Sun stated in a press release. “By teaming up with TRM Labs and Tether, TRON aims to promote using blockchain technology to improve our world, while also sending a strong signal that unlawful activities have no place within our industry.

The specialized task force known as the T3 Financial Crime Unit (T3 FCU) will work to curb any unlawful activity related to USDT, the leading stablecoin, on the Tron network. As per data from Tether, approximately $60.7 billion of USDT has been issued on Tron, with around $53.9 billion on the Ethereum blockchain and only $712 million on Solana.

The T3 Federal Credit Union announced that they have already immobilized a total of $12 million worth of USDT linked to extortion schemes and fraudulent investments.

As per the announcement, TRM Labs plans to employ their intelligent toolkit to aid Tron and Tether in scrutinizing blockchain transactions, specifically identifying unusual patterns that may indicate suspicious activity.

TRM Labs’ representatives expressed their aim to drive down the entirety of illegal cryptocurrency activity to a complete minimum.

With the increasing use of stablecoins, it’s essential for major industry figures to take action and develop their abilities to prevent illegal activities and maintain a reliable and secure atmosphere,” Chris Janczewski, head of global investigations at TRM Labs, noted in a statement.

In February, a competitor of Tether named Circle announced that they would cease producing USDC (USD Coin) on the Tron network. This move was attributed to their risk management strategy.