Tether-backed crime unit seizes $300M in crypto linked to crime

The T3 Financial Crime Unit (T3 FCU), a public-private task force backed by the stablecoin issuer Tether Limited, reported freezing illegal funds worth $300 million during its first year of operation.

Following this move, international law enforcement acknowledged that the task force had done its job well. Additionally, the achievement demonstrates that the stablecoin industry can effectively self-regulate.

According to TRON founder Justin Sun, the T3 Financial Crime Unit’s $300 million milestone is proof that progress happens when technology, institutions, and people work as a team. He noted that by building trust and cooperation across borders, it is possible to make the digital economy safer and more accessible for everyone.

The T3 Financial Crime Unit focuses on various illegal financial activities

Regarding the T3 Financial Crime Unit’s accomplishment, sources revealed that the task force achieved this milestone after working directly with law enforcement in 23 areas, including a crucial role in Brazil’s major Operation Lusocoin.

When reporters reached out to Tether for further information, the company stated that the unit focuses on various illegal finance activities such as state-sponsored hacks, violent “wrench attacks,” and organized crime groups. 

To support this claim, reports revealed that the unit in Brazil assisted in Operation Lusocoin, resulting in the freezing of more than R$3 billion in assets. This marked one of the most significant recent confiscations, including 4.3 million USDT connected to a criminal organization. The report also highlighted the predominance of stablecoins in major currency evasion and money laundering cases.

After careful consideration, Tether noted that the US had been ranked as the most active jurisdiction globally, with $83 million in frozen assets across 37 cases, followed by significant operations in Europe and South America.

The discovery outlines the existence of a diverse and challenging threat environment. On the other hand, recent reports have highlighted that the most common crime scrutinized involved the illegal sale of goods and services. It accounted for around 39% of the task force’s workload.

High-profile hacks, fraud, and scams were also uncovered in this investigation. An example is a single seizure of about $19 million linked to North Korea’s involvement in the Bybit hack. 

To address these issues, Tether and its partners have vowed to maintain a strong partnership with agencies worldwide, including Europol. At the same time, they continue to investigate major criminal activities like financing terrorism, extortion schemes, money laundering, and investment fraud.

T3 FCU launches the T3+ Global Collaborator Program

To expand its footprint in the crypto ecosystem, the T3+ Global Collaborator Program launched in August, and Binance became its first significant member.

T3+ will serve as a “public-private” uniting between industry actors and law enforcement agencies worldwide. The ultimate goal is to expedite cross-border investigations and enhance monitoring capabilities by collaborating closely with exchanges, financial institutions, and other key stakeholders.

Nils Andersen-Röed, Global Head of the Financial Intelligence Unit at Binance, called the effort “proactive collaboration.”

Following its launch, concerns were raised about the program’s impact. This was addressed at Vienna’s 9th Global Conference on Criminal Finances and Cryptocurrencies. Europol and the Basel Institute on Governance co-hosted the event

During this event, prominent executives from leading companies, including TRON DAO, Tether, Binance, and TRM Labs, met with Europol officials to discuss how the T3 framework can serve as a guide for future public-private collaborations. 

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