In a crackdown on European crypto laundering, Tron, Tether, and TRM froze $26.4 million in illicit funds.
Working alongside Spanish authorities, Tron, Tether, and TRM Labs targeted and disrupted a continent-wide cryptocurrency laundering scheme.
With the assistance of blockchain firms Tron, Tether, and TRM Labs, Spanish authorities froze $26.4 million linked to a pan-European money laundering operation.
In August 2024, the three blockchain firms launched the T3 Financial Crime Unit, which played a key role in the recent operation.
Law enforcement’s surveillance played a crucial role in identifying the crime organization.
By leveraging Know Your Customer data from providers, the T3 Unit connected the wallets to criminal activity, achieved its largest freeze so far, and added to the $126 million secured in its first year.
“This organization moved millions across borders, using both cash and crypto to help criminal groups launder their profits,” a spokesperson for the Spanish law enforcement agency Guardia Civil said in a press release.
By strengthening its security protocols, Tron reportedly prevented $6 billion in illegal transactions on its blockchain.
TRM Labs identified that 49% of illegal activity on Tron’s blockchain involves sanctioned entities, while 32% ties to funds flagged on blocklists.
According to TRM Labs, Tron continues to dominate as the blockchain for illicit transactions, with 58% of these activities occurring on its network, while Tether’s USDT leads as the asset of choice for criminal operations.
Centralized stablecoins, including USDt and Circle’s USD Coin, commonly freeze funds involved in criminal activities, a practice that has become well-established.
Read also: UK report lists crypto firms as high-risk for money laundering in 2022-2023
To prevent illegal transactions, stablecoin issuers maintain mechanisms that block such activities.
“Let this serve as a clear warning—criminals who attempt to misuse Tether will get caught,” Tether CEO Paolo Ardoino said in the press release.
Following an investigation by the US Department of Justice, Tether froze $225 million in USDT in November 2023, connected to pig butchering scams in which fraudsters coerce victims through built relationships.
Criminal groups largely run these scams, making Southeast Asia a hub for fraud. Many victims endure kidnapping and forced labor in scam operations hosted at resorts.
Proceeds from pig butchering operations flow through the dark web marketplace Huione Guarantee, a platform that used to rely heavily on Tether.
Elliptic, a security firm, reported that the platform introduced its own stablecoin in September to avoid frozen funds.
