Tether teams up with TRON and TRM Labs to combat USDT crime News ▸ Tether · TRON ▸ Stablecoins
Tether teams up with TRON and TRM Labs to combat USDT crime
Global authorities’ warnings prompt Tether, TRON partnership to fight fraud involving USDT stablecoin.
2 min read
Updated: Sep. 10, 2024 at 3:51 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Tether is teaming up with TRM Labs and TRON to form a “T3 Financial Crime Unit” to combat the illicit use of its USDT stablecoin on the TRON blockchain, according to a Sept. 10 statement shared with CryptoSlate.
Over the past year, global authorities have raised alarms about the illegal use of USDT on TRON. In January, the UN highlighted a surge in fraudulent transactions involving USDT, particularly in Southeast Asia, and labeled TRON as a “preferred” network for such illicit activities—Tether and TRON pushed back against these claims.
Yet, market insiders point to a double-edged sword. USDT on TRON has one of the cheapest fees in the market and is also very easy to use. These perks inadvertently appeal to honest users and crooks who use them for illegal activities.
Justin Sun, the founder of TRON, acknowledged this, noting that the new collaboration will demonstrate the positive potential of blockchain technology and signal that illegal activities will not be tolerated in the industry.
Paolo Ardoino, CEO of Tether, emphasized that the company was committed to taking proactive steps to uphold security and trust within the ecosystem.
Data from Tether shows that nearly half of its $118 billion USDT supply is on the TRON blockchain, with around 39% on Ethereum.
Advancing crypto education
In a parallel development, Tether is advancing its educational initiatives through a partnership with Celo-based P2P payments firm Valora and the Stabila Foundation, according to a Sept. 10 statement.
This collaboration aims to promote the adoption of blockchain technology through an educational program focused on stablecoins. The partnership will highlight USDT’s practical applications on Celo, a low-cost, fast-growing Ethereum Layer 2 solution. The program will cover use cases such as remittances, payments, value storage, yield earning, and staking.
The Valora Learning Program will target emerging markets in Nigeria, South Africa, Brazil, Turkey, and Vietnam. Participants will use the Valora app to demonstrate stablecoin usage and gain hands-on experience while earning rewards through the Valora wallet.
Ardoino noted that this initiative would revolutionize financial interactions in underserved communities. He added:
“This collaboration with Valora on Celo allows individuals to experience the power of stablecoin technology in real-world, everyday situations, empowering them to confidently and effortlessly participate in the global economy.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Ethereum
$3,468.89
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Celo
$0.71090
Celo describes itself as an open platform that makes financial tools accessible to anyone with a mobile phone.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
TRM Labs
TRM Labs is a blockchain intelligence company that helps financial institutions, crypto businesses, and government agencies detect and investigate crypto-related financial crime and fraud.
Justin Sun has carved a name for himself as a leading figure in the blockchain sector.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.
