T3 Financial Crime Unit has frozen more than $450 million in illicit digital assets globally, marking a new milestone for the joint anti-crime initiative created by Tether, TRON and TRM Labs to target illegal crypto flows.
The frozen assets were linked to investigations involving banned or controlled substances, exchange hacks, DPRK-linked activity, terrorist financing, violent crime, home invasions, kidnappings and extortion, as law enforcement agencies step up scrutiny of blockchain-based financial crime.
T3 FCU expands crypto crime crackdown
Tether said T3 FCU intercepted 43.9% more illicit proceeds in 2025 than in the previous year, with law enforcement agencies in the United States, Spain, Germany, the Netherlands and Bulgaria leading efforts by blacklisted asset volume.
The unit was launched in 2024 as a public-private effort to detect and disrupt illicit use of USDT on the TRON blockchain. It has since grown into a broader enforcement model, analyzing millions of transactions across five continents and working with regulatory and government partners in 23 jurisdictions, including the United States, Spain, Germany, Brazil and the United Kingdom.
Tether said the initiative has helped prevent criminal activity before it escalates while supporting a rise in legitimate digital asset transactions, with T3 FCU acting as a link between blockchain firms, analytics providers and law enforcement agencies seeking faster action against suspicious crypto flows.
Rapid freezes become key enforcement tool
T3 FCU has developed into a rapid communication and blocklisting system, allowing suspicious assets to be identified and frozen quickly when law enforcement requests action. Tether said the unit has frozen assets within 24 hours in several account takeover cases and violent crime emergencies.
The milestone follows T3 FCU’s action following the Bybit hack, when the unit froze nearly $9 million tied to the $1.5 billion crypto theft, one of the largest attacks ever recorded in the sector.
The attack was later linked by U.S authorities to North Korea, and the freeze showed how quickly blacklist tools can be used to slow stolen funds before they are moved through wallets and laundering networks.
The unit also supported Operation Lusocoin, a Brazilian Federal Police investigation that led to the freezing of more than 3 billion Brazilian reais in cryptocurrency assets, including 4.3 million USDT tied to a criminal network.
Industry and law enforcement tighten coordination
Tether Chief Executive Paolo Ardoino said digital asset companies have a responsibility to keep blockchain networks safe as crypto becomes more accessible, adding that compliance remains part of Tether’s commitment to users and regulators.
TRON founder Justin Sun said USDT on TRON plays a central role in global transaction flows, making cooperation between blockchain networks, industry participants and law enforcement important for protecting users while preserving the openness and efficiency of blockchain technology.
Chris Janczewski, TRM’s head of global investigations and a former IRS Criminal Investigation special agent, said the unit’s work shows the value of pairing real-time intelligence with coordinated public-private action.