TRON DAO partners with Tether to freeze $12M USDT in anti-crime push TRON DAO partners with Tether to freeze $12M USDT in anti-crime push
The new task force was developed to help combat the illicit use of the USDT stablecoin on the TRON blockchain.
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Updated: Sep. 16, 2024 at 11:31 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
TRON DAO, the decentralized organization behind the TRON blockchain, announced that the newly formed T3 Financial Crime Unit (T3 FCU) task force has already frozen over $12 million in USDT linked to illicit activities.
In a Sept. 16 post on X, TRON DAO stated:
“While others didn’t act, the T3 Financial Crime Unit, in collaboration with law enforcement, had already frozen over $12 million in USDT on TRON tied to illicit activities.”
While no further details were provided, the organization emphasized that this proactive action strengthens trust and advances the crypto industry by ensuring better security.
Last week, TRON DAO launched a task force in partnership with TRM Labs and stablecoin issuer Tether to combat financial crime involving USDT, the largest stablecoin, on the blockchain. Data from Tether reveals that nearly half of its $118 billion USDT supply is hosted on the TRON blockchain, with about 39% on Ethereum.
Circle faces scrutiny
This development comes as Circle faced criticism for its delayed action in blacklisting a wallet linked to the North Korea-backed Lazarus Group.
On Sept. 14, blockchain investigator ZachXBT accused Circle of prioritizing profit over the health of the crypto ecosystem. He pointed out that Circle took over four months longer than other major stablecoin issuers to blacklist funds tied to the Lazarus Group.
He further stated that the company allowed money laundering through its platform while portraying itself as a compliant ecosystem protector.
ZachXBT said:
“Not once has [Circle] ever blacklisted after a DeFi exploit / hack when there was ample time while [they] continue to profit off the transactions.”
Circle’s USDC is the second-largest stablecoin in the industry, with a market capitalization of around $35 billion, according to CryptoSlate’s data.
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Posted In: Stablecoins
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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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TRON is one of the largest blockchain-based operating systems.
Tether
$1.00005
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Ethereum
$2,306.70
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
USD Coin
$0.99993
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
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.
ZachXBT is an independent on-chain sleuth who is popular on revealing bad actors in the crypto space.
