Tether-backed crime unit freezes $300m of illicit funds

Tether and its T3 partners have frozen over $300 million in criminal assets, a milestone revealing a year-long, multi-continent offensive against crypto money laundering and fraud.
Summary

• Tether-backed T3 Financial Crime Unit has frozen over $300 million in illicit funds across 23 jurisdictions in its first year of operation.
• The unit assisted Brazil’s Operation Lusocoin, which seized over R$3 billion, including 4.3 million USDT tied to a major money-laundering ring.
• Common crimes targeted include fraud, hacks, and illicit goods trade, with the U.S. accounting for $83 million in frozen assets.

According to a press release dated Oct. 31, the T3 Financial Crime Unit, a coalition spearheaded by Tether alongside the TRON network and analytics firm TRM Labs, has officially frozen over $300 million in assets linked to criminal activity.

“The T3 Financial Crime Unit’s USD 300 million milestone is proof that progress happens when technology, institutions, and people work together. By building trust and cooperation across borders, we can make the digital economy safer and more accessible for everyone,” TRON founder Justin Sun said.

The milestone, reached in just over a year of operation, stems from direct collaboration with law enforcement across 23 jurisdictions, including a pivotal role in Brazil’s massive Operation Lusocoin. Tether said the unit’s work has targeted a broad spectrum of illicit finance, from state-sponsored hacks to violent “wrench attacks” and organized crime networks.

A deeper look at Tether’s global anti-crime footprint

The unit’s capabilities were prominently displayed in Brazil, where its assistance in Operation Lusocoin led to the freezing of over R$3 billion in assets. This massive seizure included 4.3 million USDT directly tied to the criminal organization, an example of how stablecoins are being tracked in major money laundering and currency evasion schemes.

Globally, Tether said the United States has been the most active jurisdiction, accounting for $83 million in frozen assets across 37 separate cases. This was followed by significant operations in Europe and South America.

The data reveals a diverse and evolving threat landscape. The most common category of crime investigated involved illicit goods and services, representing 39% of the unit’s caseload. This was closely followed by fraud, scams, and high-profile hacks, including a single $19 million seizure linked to the DPRK’s involvement in the Bybit hack.

Tether and its partners have pledged to continue its close collaboration with agencies worldwide, including Europol, focusing on active investigations into money laundering, investment fraud, extortion schemes, and terrorism financing.

To expand its reach, the T3+ Global Collaborator Program was established in August 2025, with Binance joining as its first major member. The model’s growing influence was further cemented at the 9th Global Conference on Criminal Finances and Cryptocurrencies in Vienna, co-organized by Europol and the Basel Institute on Governance.

There, senior figures from TRON DAO, Tether, Binance, and TRM Labs sat down with Europol officials to discuss how the T3 framework can serve as a blueprint for future public-private seizures.