Tether, TRON and TRM Labs freeze $450 million in illicit crypto assets across 23 jurisdictions

T3 Financial Crime Unit (T3 FCU), a joint crypto crime-fighting initiative launched by TRON, Tether, and TRM Labs, has frozen over $450 million in illicit digital assets globally as part of expanding efforts to combat blockchain financial crime in coordination with regulators and law enforcement agencies.

T3 FCU reported a nearly 44% increase in illicit proceeds intercepted during 2025 compared with the previous year, with enforcement agencies in the US, Spain, Germany, the Netherlands, and Bulgaria leading anti-money laundering and asset-freezing efforts.

The organization has assisted in investigations involving controlled substances, exchange hacks, DPRK-linked cyber activity, terrorist financing, violent crime, kidnappings, extortion, and account takeover incidents.

According to the initiative, its expanded real-time monitoring and intervention capabilities are helping reduce illicit crypto activity while strengthening confidence in legitimate digital asset adoption.

Originally created as a rapid communication and blocklisting system focused on illicit $USDT activity on the TRON blockchain, T3 FCU said it has repeatedly frozen suspicious assets within 24 hours at the request of law enforcement during emergency investigations.

The unit also participated in major international operations, including Brazil’s Operation Lusocoin, where authorities froze more than R$3 billion in crypto assets tied to criminal organizations, including 4.3 million $USDT.

“As digital assets grow to become more accessible, so does our responsibility to ensure that they remain safe and secure,” Paolo Ardoino, CEO of Tether, said in a statement. “Compliance is not an option; it is a part of our commitment to protect our users and stop any illicit behaviors. At Tether, we take pride in working with regulators and institutions to make blockchain technology more reliable and trustworthy.”

The unit now coordinates with regulatory agencies and government partners across 23 jurisdictions, including the US, Spain, Germany, Brazil, and the United Kingdom. It has analyzed millions of transactions across five continents to detect fraud, exploits, and criminal fund movements on blockchains.

TRON has surpassed 380 million user accounts and processed more than 13 billion transactions. The network also hosts more than $88 billion in circulating $USDT, making enforcement efforts on TRON especially crucial for the wider stablecoin market.

“$USDT on TRON plays a central role in global transaction flows, supported by the network’s scale and efficiency,” Justin Sun, Founder of TRON, stated. “T3 FCU reflects the importance of collaboration across blockchain networks, industry participants, and law enforcement, demonstrating that user security and network integrity can be strengthened while preserving the openness and efficiency that underpin blockchain technology.”

Recognition and growing need

The Financial Action Task Force (FATF) recognized T3 FCU earlier this year as an “invaluable resource for law enforcement agencies worldwide.”

In its reporting on public-private partnership models, FATF highlighted the unit alongside TRM’s Beacon Network as leading global frameworks for addressing illicit activity in digital assets. That recognition arrives as illicit crypto flows have reached a record $158 billion, increasing the demand for real-time identification and disruption of criminal funds.

FATF is the Paris-based intergovernmental body that sets global anti-money-laundering standards. Its endorsement carries weight for an industry that has long faced scrutiny over its use in financial crime.

“Together, we are helping protect the integrity of the growing crypto economy. In a world where funds move at unprecedented speed and scale, success depends on collaboration—pairing real-time intelligence and expertise with coordinated public-private action to disrupt illicit activity as it happens,” Chris Janczewski, TRM’s Head of Global Investigations and former IRS Criminal Investigation Special Agent, emphasized.