T3 Freezes $100M Tether in Global AML Crackdown

T3 Financial Crime Unit—T3 FCU, recently froze $100 million in Tether suspected of being linked to illegal activities. This was part of a larger operation aimed at tackling crime in the cryptocurrency space. Tether, Tron, and TRM Labs formed the T3 FCU in September last year.

Uncovering Criminal Networks

The T3 FCU’s investigation covered five continents and examined over $3 billion in Tether transactions. The unit uncovered alarming trends, including a criminal service called "money laundering as a service." 

In this scheme, criminals hire darknet users to launder money. Chris Janczewski, head of global investigations at TRM Labs, highlighted the significant role these activities played in the frozen funds. 

The T3 FCU’s efforts also targeted investment scams, drug operations, and terrorism-related crimes, all contributing to the ongoing battle against financial crime in the crypto world.

Tron’s Bold Move and Market Repercussions

Justin Sun, the founder of Tron, responded to the crackdown, stating that criminals now have fewer reasons to use TRX-based products. This is a major shift for the Tron network, which has faced criticism and regulatory pressure. 

Last year, the U.S. SEC charged Sun and his businesses over allegations of unregistered securities and market manipulation. However, Sun and the Tron DAO have taken proactive steps to improve the network’s reputation.

By facilitating the freeze of $100 million in illicit Tether, the Tron network is demonstrating a commitment to security. This move stands in stark contrast to earlier concerns about criminal activity linked to the platform.