T3 Financial Crime Unite Ready To Clean Online Fraud
- TRM, Tether and Tron Teams up to fight online crime.
- Tron accounted for half of illicit activities in 2023 according to TRM lab.
- Tether dominated terrorism financing.
In a collaboration aimed at combating financial crime in the digital space, blockchain platform Tron, stablecoin issuer Tether, and blockchain intelligence firm TRM Labs have announced the formation of a new task force. This initiative seeks to enhance the safety and integrity of digital assets and promote responsible financial practices.
The alliance comes in response to the growing concerns surrounding cryptocurrency-related fraud, money laundering, and other illicit activities. By combining their expertise and resources, Tron, Tether, and TRM Labs aim to develop advanced detection tools and strategies that will help identify and mitigate financial crime within the cryptocurrency ecosystem.
According to TRM lab data, in 2023 Scams and frauds accounted for approximately a third of all crypto crimes. Despite the overall proportion of total illicit funds in the crypto ecosystem shrinking by 9% year-on-year, criminals still handled over USD 34 billion worth of cryptocurrencies.
Key Data
Across the entire ecosystem, illicit fund volumes dropped by just under a third, from USD 49.5 billion in 2022 to USD 34.8 billion in 2023 – surpassing the 22% decline in total cryptocurrency volumes during that period.
Sales of illicit drugs on darknet marketplaces (DNMs) grew to USD 1.6 billion, from USD 1.3 billion recorded in 2022. Individual vendor shops operating outside DNMs rose to USD 310 million from USD 271 million in 2022.
TRON (TRX) hosted 45% of all illicit volumes, up from 41% in 2022, followed by Ethereum at 24% and Bitcoin with 18%.
Tether (USDT) was the stablecoin with the largest amount of illicit volume, at USD 19.3 billion. Approximately 1.63% of Tether (USDT) volume was linked by TRM to illicit activity, compared to 0.05% of USDC.
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Commitment To Fight Terrorism
Hamas and other groups announced moratoriums on crypto donations over 2023, likely in response to greater international law enforcement scrutiny. This became particularly acute in the wake of the Hamas attacks on Israel in October 2023, which spurred leading exchanges and cryptocurrency companies to freeze assets linked to Hamas and its sympathizers.
Yet among those terror financing campaigns that continued to accept cryptocurrency, the number of unique TRON addresses that received Tether (USDT) rose by 125%.
TRON originated with the belief that technology can be used for good and to empower people across the globe,” Sun said in a release. “By collaborating with TRM Labs and Tether, TRON is helping to ensure that blockchain technology is used to make our world a better place, and sends a clear message that illicit activity is not welcome in our industry.”
The task force, the T3 Financial Crime Unit (T3 FCU), will combat illicit activity involving USDT, the largest stablecoin, on Tron. Data from Tether shows there’s $60.7 billion of USDT issued on Tron, $53.9 billion on the Ethereum blockchain and $712 million on Solana.
As adoption of stablecoins continues to rise, it’s critical that key industry players proactively evolve their capabilities to combat illicit activity and ensure a safe and secure environment,” Chris Janczewski, head of global investigations at TRM Labs, said in a press release.
The new financial crime-fighting force plans to work closely with law enforcement agencies and regulatory bodies to share intelligence and develop best practices for cryptocurrency compliance. This collaborative approach aims to build trust among investors and users, ensuring that the growing digital asset market remains a safe space for innovation and growth. As the cryptocurrency landscape continues to evolve, this coalition of industry leaders marks a significant step towards promoting responsible financial practices and tackling the challenges posed by financial crime. With their combined efforts, Tron, Tether, and TRM Labs are poised to play a pivotal role in shaping a more secure future for the digital economy.
