Tron, Tether and Chainalysis announced a task force to identify and disrupt illicit activity involving USDT stablecoin on the Tron blockchain. The Digital Crime Task Force will use Chainalysis' blockchain analytics data and AI tools to flag suspicious activity and provide law enforcement with leads to trace and freeze funds.
The new task force replaces the T3 Financial Crime Unit, which Tron and Tether formed with TRM Labs in 2024 and disbanded in late August. According to reports, the previous unit faced challenges with slow responses and poor coordination.
The task force will prioritize investment and romance scams, crypto theft, terrorist financing, North Korean cyber operations and cartel money laundering. Tether CEO Paolo Ardoino noted that criminals are increasingly using AI to move faster, adding that Tether's cumulative USDT freezes have exceeded $7 billion.
Why Criminals Target USDT on Tron
USDT on Tron has become prevalent in illicit transactions due to low fees and deep liquidity. According to TRM Labs, USDT on Tron accounted for 99.9% of the $1.07 billion in crypto received by 34 casinos in Sihanoukville, Cambodia, from January through September. Of this total, $687 million went to casinos tied to US-sanctioned networks.
Major exchange hacks have highlighted the vulnerability. Following the $1.5 billion Bybit hack in February 2025, stolen funds were converted to USDT on Tron and cashed out through suspected Chinese over-the-counter trading services. During the $6.3 billion Binance hack in October, hackers swapped approximately $234 million in USDT for Tron's native TRX token before Tether froze the remaining USDT in wallets linked to the theft.
The US Federal Bureau of Investigation attributed both hacks to North Korea, though North Korean state media rejected the attribution in a statement published in November.
