Tether, Tron and TRM Financial Crime Unit Has Frozen $450 Million in Illicit Crypto Funds

In brief

Tether, Tron, and TRM Labs’ joint T3 Financial Crime Unit has frozen over $450 million in illicit crypto assets since launching in September 2024.
The unit said it intercepted nearly 44% more illicit proceeds in 2025 than the prior year, targeting crimes ranging from terrorist financing and drug trafficking to violent crimes like kidnapping and extortion.
The crackdown comes as global illicit crypto flows hit a record $158 billion last year, per TRM Labs.

A financial crimes unit formed by three major cryptocurrency firms announced Thursday that it has frozen more than $450 million in illicit digital assets since launching less than two years ago, as the broader problem of criminal activity in the crypto sector reaches unprecedented levels.

The T3 Financial Crime Unit—a joint initiative by stablecoin issuer Tether, blockchain network Tron, and analytics firm TRM Labs—said it has frozen the assets globally while deepening its collaboration with regulatory agencies to target crypto-related financial crimes.

The unit said it has supported investigations this year into crimes ranging from drug trafficking and exchange hacks to terrorist financing, North Korea-linked activity, and violent crimes including home invasions, kidnappings, and extortion.

The announcement comes as criminal exploitation of digital assets surges. Illicit crypto flows reached a record $158 billion last year, according to TRM Labs, underscoring the growing urgency for real-time intervention tools.

The unit intercepted nearly 44% more illicit proceeds in 2025 than the prior year, with law enforcement agencies in the United States, Spain, Germany, the Netherlands, and Bulgaria among those leading enforcement efforts.

“As digital assets grow to become more accessible, so does our responsibility to ensure that they remain safe and secure,” said Tether CEO Paolo Ardoino, in a statement. “Compliance is not an option; it is a part of our commitment to protect our users and stop any illicit behaviors. At Tether, we take pride in working with regulators and institutions to make blockchain technology more reliable and trustworthy.”

T3 FCU was recognized earlier this year by the Financial Action Task Force as an “invaluable resource for law enforcement agencies worldwide,” with FATF specifically citing the unit in its reporting on public-private partnership models for combating illicit activity in digital assets.

The unit said it has the capability to freeze assets within 24 hours and operates in coordination with government partners across 23 jurisdictions, including the United States, Brazil, Germany, Spain, and the United Kingdom. Among its notable operations was support for a Brazilian Federal Police investigation that resulted in the freezing of more than 3 billion reais in crypto assets.