 Tron, Tether, TRM freeze $26.4M linked to European crypto laundering gang 
2025-01-27
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Spanish law enforcement, in collaboration with blockchain firms Tron, Tether and TRM Labs, has frozen $26.4 million in cryptocurrencies linked to a pan-European money laundering operation.
The operation involved collaboration with the T3 Financial Crime Unit, an anti-crime initiative launched in August 2024 by the three blockchain firms.
The investigation relied on police surveillance to identify the crime organization. Its crypto wallets were connected to illicit activities using Know Your Customer data from service providers to mark the T3 Unit’s largest coordinated freeze to date, adding to the $126 million recorded in its debut year.
“This organization moved millions across borders, using both cash and crypto to help criminal groups launder their profits,” a spokesperson for the Spanish law enforcement agency Guardia Civil said in a press release shared with Cointelegraph.
Tron’s security efforts have reportedly curbed illicit volumes on its blockchain by $6 billion. TRM Labs found that 49% of Tron’s illegal activity is linked to sanctioned entities, with 32% tied to blocklisted funds.
However, Tron is still the top blockchain for illicit transactions, with 58% of such activity occurring on the network, while Tether’s USDT is the most-used asset for criminal activities, according to TRM Labs.
Money launderers spin up alternatives
The use of centralized stablecoins like USDt (USDT) and Circle’s USD Coin (USDC) for freezing funds associated with criminal activity is a well-established practice. Stablecoin issuers have built-in mechanisms to block transactions linked to illegal activities.
“Let this serve as a clear warning—criminals who attempt to misuse Tether will get caught,” Tether CEO Paolo Ardoino said in the press release.
In November 2023, Tether froze $225 million in USDT linked to pig butchering scams — fraud schemes involving coercion and relationship-building to swindle victims — following a US Department of Justice investigation.
Southeast Asia has become a hub for such scams, often run by criminal syndicates. Victims of these operations include individuals kidnapped and forced into scam operations at resorts.
Pig butchering syndicates reportedly launder proceeds through a dark web marketplace called Huione Guarantee, which once heavily relied on Tether. To avoid frozen funds, the platform launched its own stablecoin in September, according to security firm Elliptic.