Crypto Crime Alliance T3 Disbanded as Illicit Activity Surges: Report

A crypto crime-fighting initiative backed by Tron (CRYPTO: $TRX), Tether (CRYPTO: $USDT), and blockchain analytics firm TRM Labs has been dissolved, as digital asset thefts and illicit transactions continue to climb.

The three companies launched the T3 Financial Crime Unit in September 2024 to identify and freeze criminal funds moving across blockchain networks. Binance joined the initiative a year later, when the group announced it had frozen $250 million in assets linked to illicit activity through cooperation with law enforcement agencies.

However, disagreements, slow response times, and poor coordination among members reportedly undermined the partnership, Bloomberg reported, citing people familiar with the matter. According to the report, T3 was disbanded in late August, although the decision was not publicly announced.

Tron reportedly told Bloomberg that the program had been successful but confirmed that it had concluded. “Tron remains committed to working to help stop illicit activities on the blockchain, in partnership with law enforcement. More on our new initiative will be coming soon,” Tron said.

Meanwhile, Tether said it would continue working with TRM Labs to trace and disrupt illicit transactions. The stablecoin issuer pointed to its participation in TRM's Beacon Network, a separate real-time intelligence-sharing initiative launched last year.

The group's collapse comes as crypto-related crime reaches new highs. Last month, hackers stole $6.3 billion from Binance in what was described as a record-breaking crypto heist. The FBI has linked the attackers to North Korea.

Tether has stepped up its efforts to freeze suspicious funds, reporting that it has blacklisted around $5 billion in USDT to date. Following the Binance incident, the company froze approximately $1.5 billion in tokens.

The industry also came together as part of a wider response that immobilized roughly half of the stolen funds. However, more than $3 billion reportedly remained with the attackers, who have been trying to move the funds through different channels.