Tether, the largest stablecoin issuer, partnered with Tron and blockchain intelligence firm TRM Labs to tackle criminal activity involving USDT.
This initiative, called the T3 Financial Crime Unit (T3 FCU), focuses on addressing illicit activities on the Tron blockchain.
A 2023 TRM Labs report revealed that Tron accounted for nearly 45% of all illicit crypto volume, leading to the creation of this task force.
The features that make USDT attractive to legitimate users also attract scammers and terrorist financiers. Over 50% of USDT's circulating supply operates on the Tron blockchain.
TRM Labs disclosed that scams and frauds accounted for approximately a third of all crypto crimes last year, with USDT dominating terrorist financing on Tron.
Forbes reported that USDT has become a preferred choice among money launders and scammers, citing a UN report that Tether challenged.
These cases highlight the importance of initiatives like T3 FCU, especially as regulatory scrutiny intensifies. Tether has previously frozen millions in USDT linked to scams and human trafficking.
