- TRON, Tether, and TRM Labs launch the T3 Financial Crime Unit to combat illicit USDT transactions.
- The T3 FCU has frozen $12 million in fraudulent USDT and identified 11 suspects.
- Despite Circle halting USDC minting on TRON, Tether minted $19 billion in USDT on the network this year.
TRON, stablecoin issuer Tether, and blockchain forensics firm TRM Labs have announced a partnership to tackle illicit activity involving USDT on the TRON blockchain.
This collaboration resulted in the creation of the T3 Financial Crime Unit (FCU), a private-sector initiative designed to disrupt criminal networks that exploit TRON for illegal transactions.
#TRON, @Tether_to, and @trmlabs today announced we have joined forces to establish the T3 Financial Crime Unit, a first-of-its-kind initiative aimed at facilitating public-private collaboration to combat illicit activity associated with the use of USDT on the TRON blockchain.… pic.twitter.com/156pMChPra
— TRON DAO (@trondao) September 10, 2024
T3 Financial Crime Unit (FCU)
The T3 Financial Crime Unit was formed in response to rising criminal activity on the TRON network, including scams and fraud. Built around real-time data sharing and advanced analytics, the FCU provides a coordinated approach to detect, trace, and disrupt illicit flows of USDT.
TRON’s ecosystem—characterized by low fees, high throughput, and broad user adoption—has become a major venue for stablecoin activity. The network reports hundreds of millions of users and billions of transactions, attracting substantial legitimate usage but also drawing attention from bad actors who exploit its speed and scale.
TRM Labs’ research underscores the scope of the problem: in 2023, USDT was associated with over $19 billion in illicit funds, with roughly 45% of those transactions occurring on TRON. Against that backdrop, the T3 FCU focuses on identifying and halting unlawful transfers of USDT across the network.
Since its launch, the FCU has used forensic tools and cooperative investigations to freeze more than $12 million in USDT connected to fraudulent schemes. Working with law enforcement partners in the United Kingdom, the United States, Australia, and other jurisdictions, the unit has identified 11 suspects so far, with further leads under investigation.
Circle halts USDC minting on TRON
Separately, Circle, the issuer of USDC, announced in February that it would stop minting USDC on the TRON blockchain, citing risk management concerns amid increased regulatory scrutiny. That move reflects broader caution among stablecoin issuers when faced with evolving compliance expectations.
Despite Circle’s decision, TRON remains a dominant venue for USDT issuance and activity. In August 2024, Tether issued an additional $1 billion in USDT on TRON, bringing the year-to-date total minted USDT to $33 billion, of which approximately $19 billion was issued on the TRON network.
The establishment of the T3 FCU represents a proactive, private-sector effort to strengthen blockchain security and transparency. By combining industry data, forensic analytics, and coordinated law enforcement engagement, TRON, Tether, and TRM Labs aim to reduce the misuse of USDT and improve trust in the digital asset ecosystem.