Tether, Tron, and TRM Labs freeze $126M USDT in 2024

The T3 Financial Crimes Unit (FCU), led by Tether (CRYPTO:USDT), the Tron (CRYPTO:TRX) network, and TRM Labs, has collectively frozen $126 million in USDT since its formation in August 2024.

The FCU works closely with global law enforcement agencies to identify and freeze illicit transactions, monitoring over $3 billion in USDT transaction volume during 2024.

According to the FCU, money laundering was responsible for nearly half of the frozen funds, totaling $56 million.

Investment scams accounted for the second-largest category, with $36 million in funds frozen.

While the FCU’s actions aim to prevent criminal activities, asset freezes and financial surveillance have sparked controversy within the crypto community.

Decentralisation advocates and privacy supporters argue that such centralised measures could compromise self-autonomy and lead to financial censorship by governments and corporations.

This year’s freezes add to Tether’s history of freezing USDT accounts.

In October 2022, Tether froze $8.2 million in USDT on the Ethereum (CRYPTO:ETH) network without providing an explanation.

By the end of 2022, Tether had blacklisted over $360 million worth of USDT.

In October 2023, Tether froze around $873,000 in USDT linked to terrorist activities in Ukraine and Israel, increasing the total amount of frozen USDT to $835 million.

Additionally, Tether cooperated with a US Department of Justice investigation into a Southeast Asian human trafficking syndicate, freezing $225 million in stablecoins tied to the group in November 2023.

In April 2024, Tether also announced plans to freeze assets from Venezuela to enforce US sanctions after reports indicated the country’s state-owned oil company was using stablecoins to evade US restrictions.

Tether’s recent freezes further illustrate the ongoing intersection of crypto, law enforcement, and regulatory scrutiny.

At the time of reporting, the Tether (USDT) price was $0.999 and the TRON (TRX) price was $0.2652.