Tron, Tether, Chainalysis launch Digital Crime Task Force after T3 reportedly disbands
In brief
- Tron, Tether and Chainalysis announced the Digital Crime Task Force on Wednesday, Decrypt reported.
- The task force says it will trace criminal networks and coordinate USDT freezes on Tron.
- Tether says it has frozen more than $7 billion tied to illicit activity.
- T3, the earlier unit built with TRM Labs, disbanded in late August, Bloomberg reported.
What the new task force says it'll do
The group says it'll proactively trace criminal networks and coordinate asset freezes, using Chainalysis's intelligence and AI-powered investigative tools. It'll also take tips and freeze requests from police.
The target list is broad. According to the announcement, it covers romance and investment scams, stolen funds, terrorist financing, North Korean cyber operations, cartel money laundering and child-exploitation material (and the group warned that autonomous AI agents transacting onchain will open new avenues for criminal exploitation).
"Criminals are using AI to move faster than ever, and waiting for a victim to report a crime is no longer good enough," Tether CEO Paolo Ardoino said.
Ardoino said the company has frozen more than $7 billion tied to illicit activity while working with over 360 law enforcement agencies across 73 countries. Tron founder Justin Sun described the effort as protecting the millions of people who rely on USDT.
That's a lot of exposure: more than $94 billion of USDT circulates on Tron, according to Decrypt.
Why T3 didn't last
Tron and Tether have done this before. Their T3 Financial Crime Unit was formed in 2024 with rival analytics firm TRM Labs, and Binance joined later. Decrypt reported that the group froze more than $450 million in tainted assets.
That run ended in late August, according to Bloomberg, which reported (as relayed by Decrypt) that T3 was quietly disbanded. People familiar with the matter cited slow response times and poor coordination among its members.
A pointed swap
Decrypt called the move from TRM to Chainalysis a pointed one, describing the two firms as fierce competitors. The outlet also noted that Chainalysis has sued the U.S. government over an ICE contract that went to TRM without competitive bidding.
Frequently asked questions
What is the Digital Crime Task Force?
It's a joint effort by Tron, Tether and Chainalysis, announced Wednesday, to identify illicit activity involving USDT on the Tron blockchain and flag it to law enforcement before criminals can move funds. The group says it'll trace criminal networks, coordinate asset freezes and accept tips and freeze requests from police.
What happened to the T3 Financial Crime Unit?
T3 was formed by Tron and Tether in 2024 with TRM Labs, and Binance joined later. Decrypt reported it froze more than $450 million in tainted assets. Bloomberg reported it was quietly disbanded in late August, with people familiar citing slow response times and poor coordination.
