Tron Blockchain Partners with TRM Labs and Tether to Combat Financial Crime

Tron Blockchain Takes a Stand Against Financial Crime

A recent report from TRM Labs in 2023 highlighted a concerning statistic: nearly 45% of all illicit cryptocurrency activity was associated with the Tron blockchain. In response to this alarming figure, the blockchain, founded by entrepreneur Justin Sun, is joining forces with TRM Labs and Tether, the issuer of the largest stablecoin, to form a task force dedicated to combating financial crime.

“TRON originated with the belief that technology can be used for good and to empower people across the globe,” stated Sun in a recent press release. “By collaborating with TRM Labs and Tether, TRON is taking significant steps to ensure that blockchain technology is harnessed to create a positive impact in our world, clearly signaling that illicit activity has no place in our industry.”

The newly established task force, known as the T3 Financial Crime Unit (T3 FCU), is specifically focused on addressing illegal activities involving USDT on the Tron blockchain. According to data from Tether, there is approximately $60.7 billion worth of USDT issued on Tron, compared to $53.9 billion on Ethereum and $712 million on Solana.

The T3 FCU has already made significant strides, successfully freezing around $12 million in USDT that was linked to various blackmail scams and fraudulent investment schemes. This proactive approach underscores the unit’s commitment to tackling financial crime head-on.

TRM Labs plans to leverage its comprehensive intelligence suite to assist both Tron and Tether in analyzing blockchain activities, aiming to identify and flag suspicious patterns that could indicate illicit behavior. Representatives from TRM Labs emphasized that, while the overall volume of illicit cryptocurrency transactions remains relatively low, their ultimate goal is to drive this figure down to zero.

“As the adoption of stablecoins continues to grow, it is essential for key industry players to proactively enhance their capabilities to combat illicit activities and foster a safe and secure environment for all users,” remarked Chris Janczewski, the head of global investigations at TRM Labs, in the release.

In a related development earlier this year, Tether’s competitor, Circle, announced its decision to cease minting USDC on the Tron blockchain. This decision was part of Circle’s broader risk management framework, reflecting the evolving landscape of stablecoins and the increasing scrutiny on blockchain platforms.