Tron, Tether and the blockchain intelligence firm, TRM Labs, appears in the T3 Financial Crime Unit (T3 FCU) that aims to address an increased rate of criminal activities associated with the USDT in the TRON ecosystem.
The task force will target criminal use of the USDT, Tether for scams, frauds and blackmail schemes that have embraced the increased use of features that include cheap transaction fees, high liquidity of the asset, and flexibility in the TRON network.
In signing of this development, TRM Labs released its 2023 report which highlighted that TRON was on the receiving end of illicit cryptocurrency volume, accounting for almost 45% of total activity.
Tether the issuer of stablecoin USDT and Tron founded by Justin Sun has responded to this serious issue. The T3 FCU works together with the organized law enforcement, it has already blocked more than $ 12 million in USDT related to various crimes, including blackmailing and investment scams.
It is also important to understand that nowadays, Tether’s USDT, which dominates the stablecoin market, has become quite an effective tool for criminals. These features are abused by the bad actors, particularly within the TRON network that serves more than 50 percent of the total circulating supply of USDT. Tether, Tron and TRM Labs combined have ensured that these ill intended activities do not tarnish the reputation of this noble innovation.
Chris Janczewski, Head of Global Investigations at TRM Labs, drew attention to the development of security measures as stablecoins become more popular among users. The task force will not relent in its effort to curb the menace of illegal use of cryptocurrencies for their operations in order to provide a secure environment for the users. This comes just after Tether has previously locked down substantial amounts of USDT associated with fraud, such as $5.2 million in May 2023 and an all-time record of 225 million in November 2023 linked to a Southeast Asian human trafficking network.
The T3 Financial Crime Unit is the right approach to heighten the security measures in the emerging domain of cryptocurrencies, not to mention the increasing attention of the regulators concerning the utilization of the digital currency for unlawful activities.
Source: https://coinpedia.org/news/tether-tron-and-trm-labs-unite-to-combat-criminal-usdt-activity-with-new-task-force/