Tether crypto, Tron, TRM Labs team up: ‘Our goal is to create…’

by
  • T3 FCU, formed by Tether, Tron, and TRM Labs, aims to combat USDT-related crimes.
  • USDT on Tron saw $19.3 billion in illicit volume. 

As a seasoned researcher with years of experience delving into the intricacies of the cryptocurrency world, I find this alliance between Tether, Tron, and TRM Labs a welcome development in our ever-evolving digital landscape. The rising tide of crypto scams has been a concerning trend, and it’s heartening to see key players taking concrete steps towards enhancing security.

In response to the growing issue of crypto scams, Tether – the company that produces the USDT stablecoin, Tron – a decentralized organization managing the Tron blockchain, and TRM Labs, a San Francisco-based firm focusing on blockchain intelligence, have come together to establish the T3 Financial Crime Unit (T3 FCU).

Through this collaborative alliance, we’re working towards combating unlawful transactions associated with USDT on the Tron network. This action underscores our commitment to strengthening security and upholding honesty within the digital currency marketplace.

Execs weigh in…

Commenting on the development, Tron founder Justin Sun stated in a document released by Tether,

As a passionate crypto investor, my aim is to foster a more secure and trusted cryptocurrency environment. I strive to establish an exemplary model that elevates the standards within our industry.

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

According to the latest findings, the T3 Financial Crime Unit has seen substantial progress in their efforts to suppress financial crimes ever since they began operations.

Working hand-in-hand with law enforcement agencies, I’ve played a part in seizing approximately $12 million worth of USDT that were linked to a multitude of unlawful activities such as extortion schemes and deceitful investment ventures.

So far, our team has found 11 individuals affected, and we expect more cases to surface as our investigations continue.

 Reasons behind these rising crimes

Due to the growing popularity of digital assets such as USDT (Tether), valued at over $118 billion in the market, it’s unfortunate that these coins have also drawn in malicious users.

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

As a researcher delving into the world of digital currencies, I’ve noticed an intriguing trend regarding Tether (USDT). Nearly two-thirds of its total supply is functioning on the Tron blockchain, making it incredibly vast and readily accessible. This attractiveness has unfortunately made these assets a potential magnet for illicit activities.

Recognizing the progress in tackling these issues and appreciating our joint efforts, TRM Labs CEO Esteban Castaño pointed out.

Since 2019, we’ve been collaborating as the pioneering blockchain intelligence firm to trace illicit activities on Tron. Now, we’re advancing that effort with an innovative approach that expands our previous partnership.

He added, 

In addition to Tron’s efforts, resources are being allocated for monitoring illegal activities. We are growing our capacity for detective work and intelligence gathering on threats.

While the financial commitment was not disclosed, the focus seemed clear.

What do the numbers indicate?

Read morePEPE flips Optimism: Can OP emerge from the memecoin mania?

As of August, Tron boasted over 247 million user accounts and more than 8 billion transactions.

The platform’s appeal, characterized by low fees and stability, has also attracted malicious actors.

In April, TRM Labs’ findings showed that USDT (Tether) on the Tron network had the highest illegal activity volume among stablecoins, totaling approximately $19.3 billion in 2023. This figure far surpassed the illicit volume of USD Coin (USDC), which was only around $428.9 million.

The report also revealed that 45% of all illicit crypto transactions occurred on Tron last year, a rise from 41% in 2022, while Ethereum [ETH] and Bitcoin [BTC] were responsible for 24% and 18%, respectively.

In March 2023, the Securities and Exchange Commission (SEC) brought a lawsuit against Justin Sun, the founder of Tron, and his associated companies, accusing them of unregistered token offerings and market manipulation related to TRX and BTT tokens. However, Justin Sun’s legal representatives have disputed these claims.

Other crypto crime reports

According to a report from the FBI in the United States, published on the 9th of September, there’s been a significant increase in instances of cryptocurrency fraud and scams. In fact, these activities skyrocketed by an astonishing 45% in 2023 as compared to the year before.

This surge in illicit activities has led to staggering losses exceeding $5.6 billion. 

Moreover, Peckshield, a company specializing in blockchain security, disclosed that last month (August) saw more than ten significant breaches in the cryptocurrency market, resulting in combined losses amounting to approximately $313.86 million.

Therefore, with stablecoins under increasing examination, it remains uncertain if this collaboration will establish a new standard for security within the cryptocurrency sector.

Read More

2024-09-12 01:12