TRM Labs, Tether and Tron Join Forces to Fight Financial Crime
According to a recent report from TRM Labs, crypto crime is trending lower. During 2024, the total illicit crypto volume came in at $45 billion, down 24% compared to 2023. Illicit crypto volumes on the Tron blockchain, regarded as a hotbed of crypto crime, were down $6 billion.
These declines notwithstanding, however, $45 billion still represents a large chunk of change. Illicit activity on Tron may be declining, but the blockchain is still well-deserving of its âhotbedâ status. Perhaps, now even more so, given that 58% of that $45 billion was from transactions on the Tron blockchain.
Thus far, the problem of illicit transactions hasnât made much of an impact on the performance of TRX, Tronâs native cryptocurrency. Since early last year, TRX has more than doubled in price going from $0.11 in March 2024 to $0.22 on February 27, 2025, according to Binance charts.
Even so, knowing illicit activity could prove problematic down the road, Tron has started taking proactive steps to further mitigate this issue. A good example is with the formation of the T3 Financial Crime Unit, or T3 FCU.
What is the T3 FCU?
Formed in August 2024, when Tron joined forces with TRM Labs, a crypto intelligence firm, as well as with Tether, the developer of the USDT stablecoin, to combat illicit activity involving USDT on the Tron blockchain.
According to data from Tether, net circulation of USDT on Tron comes to around $61.37 billion, or around 43.25% of USDT in overall net circulation. While net circulation of USDT on the Ethereum blockchain surpasses that on Tron, given how much more illicit transaction volume is on Tron compared to Ethereum, chances are that the prevalence of illicit transactions conducted in USDT is far greater on this blockchain.
Illicit transactions run the gamut from transactions from sanctioned entities to fraud to illicit activities such as drug sales, hacking, ransomware and terrorist financing. Although fraud-related illicit crypto volumes fell 37% last year, with âpig butcheringâ-related crypto volumes falling 58%, the latter four categories increased in 2024 compared to 2023.
However, irrespective of the particular type of illicit activity, T3 FCU so far has experienced success combating this issue, as seen in subsequent announcements received over the past few months.
Initial Crackdown Efforts Prove Successful
The T3 Financial Crime Unit has been operational for just six months, but within this short time-frame, has already made initial progress clamping down on illicit crypto activity. For example, back in January, T3 partner TRM Labs reported that the T3 FCU has frozen $126 million worth of USDT associated with criminal activity since inception.
Of this $126 million, the majority of it ($65 million) represents capital from money laundering activities. $36 million has been associated with investment scams, $11 million with illicit drug trafficking, with the balance represented by USDT derived from hacking, terrorism, violent crime, and from sanctioned states like North Korea.
This figure may sound like a drop in the bucket, compared to the above-mentioned $45 billion in illicit activity conducted on the Tron blockdown annually. However, this task force is still only in the early stages. Furthermore, it is being run completely by non-government actors, and thus likely lacks the financial resources of, say, U.S. Federal Agencies like the FBI and the DEA.
Taking into account these factors, cracking down on $126 million in crypto crime is nothing to sneeze at. Instead, it is an accomplishment worthy of commendation from the crypto industry, and from the crypto community at-large.
Looking Ahead
As cryptocurrencies continue to become an increasingly larger force within the global economy, as well as within the global financial system, depending completely on national and international law enforcement and intelligence agencies isnât enough to ensure a safe and secure crypto ecosystem.
Itâs also going to require âpolicing of the blockchainâ by non-governmental organizations like the T3 Financial Crime unit. Even as T3 has it work cut out for it, with its goal of fully eliminating illicit activity on the Tron blockchain, donât discount the potential for
Over the next few months, we could see T3 FCU continue to hit new crime-stopping milestones, such as the freezing of $250 million, $500 million, maybe even $1 billion.
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