Spanish law enforcement, in partnership with blockchain giants Tron, Tether, and analytics firm TRM Labs, has frozen $26.4 million in cryptocurrencies linked to a pan-European money laundering network. This landmark operation is part of the T3 Financial Crime Unit, an anti-crime initiative launched in August 2024 by the three blockchain firms.
The investigation utilized advanced surveillance techniques and Know Your Customer (KYC) data provided by service providers to trace crypto wallets connected to criminal activities. This operation is the largest coordinated freeze to date under the T3 Unit, which previously seized $126 million in its inaugural year.
A spokesperson for Spain’s Guardia Civil stated, “This organization moved millions across borders, using both cash and crypto to assist criminal groups in laundering their profits.”
Tron’s blockchain security enhancements reportedly reduced illicit activity on its network by $6 billion. TRM Labs highlighted that 49% of Tron’s illegal transactions are tied to sanctioned entities, while 32% involve blocklisted funds. Despite these measures, Tron remains the leading blockchain for illegal transactions, accounting for 58% of such activities globally.
Stablecoin issuers like Tether are also playing a crucial role in combating crypto-related crimes. Built-in mechanisms allow them to freeze assets tied to illegal activities swiftly. Tether CEO Paolo Ardoino emphasized in a statement, “Let this serve as a clear warning: criminals who attempt to misuse Tether will be caught.”
This collaboration follows a growing trend of using blockchain technology to combat organized crime. In November 2023, Tether froze $225 million in USDT linked to “pig butchering” scams—fraud schemes that lure victims through fake relationships. Southeast Asia has emerged as a hub for such scams, often orchestrated by criminal syndicates.
The T3 Unit has made significant strides, freezing over $100 million in criminal assets across five continents. While progress is evident, challenges remain, particularly with Tether’s USDT being the most-used asset in illegal activities.
Also Read: Tether Considers US Expansion Amid Regulatory Uncertainty and Trump’s Crypto Prioritization
This operation underscores the growing collaboration between law enforcement and blockchain firms, setting a precedent for global financial crime prevention.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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