TRON Partners with Chainalysis to Monitor USDT Transactions

Blockchain network TRON, stablecoin issuer Tether, and blockchain forensics firm TRM Labs have launched the T3 Financial Crime Unit (FCU), a collaborative initiative aimed at mitigating illegal activities linked to Tether (USDT) transactions on the TRON blockchain.

The T3 FCU aims to leverage data analytics, cutting-edge technology, and partnerships with global law enforcement to disrupt malicious actors. As of August, TRON had processed over 8.4 billion transactions and hosted more than 240 million user accounts, according to TRONScan.

While USDT on TRON is attractive to legitimate users for its low fees and stability, it has also drawn the attention of criminals. According to TRM Labs’ “Illicit Crypto Economy” report, USDT accounted for over $19 billion in illicit funds, surpassing other stablecoins. The report emphasized that USDT has become the preferred currency for terrorist financing entities, with TRON facilitating 45% of all illicit crypto transactions in 2023, up from 41% the previous year.

In comparison, USD Coin (USDC) registered only $428.9 million in illicit transactions. Meanwhile, Ethereum and Bitcoin accounted for 24% and 18% of illegal crypto activities, respectively. The T3 initiative has already proven successful, freezing over $12 million in USDT tied to criminal schemes, including blackmail and fraud. Investigations have identified 11 victims, with more expected to be uncovered.

Chris Janczewski, head of global investigations at TRM Labs, highlighted the importance of international collaboration, noting that agencies from the U.K., U.S., and Australia have joined efforts to combat these illegal operations.

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