Spanish law enforcement, in partnership with blockchain firms Tron, Tether, and TRM Labs, has frozen $26.4 million in cryptocurrency linked to a money laundering network operating across Europe.
The operation was carried out by the T3 Financial Crime Unit, an initiative formed in August 2024 by the three companies to combat illicit financial activities.
The T3 FCU’s Operation
Justin Sun admitted in an X post that the operation highlights that “Criminals are drawn to the same features that make blockchain revolutionary — speed, efficiency, and borderless transactions.”
However, he emphasized that by freezing over $26 million through coordinated efforts with law enforcement, Tron’s transparency ultimately makes money laundering more difficult, not easier.
According to a press release, the probe into the money laundering operation relied on police surveillance to uncover the criminal organization. Authorities also used various investigative techniques and Know Your Customer (KYC) records from virtual asset service providers to successfully link several crypto wallets to illegal activities.
“This organization moved millions across borders, using both cash and crypto to help criminal groups launder their profits,” a spokesperson for Spain’s Guardia Civil stated.
This latest action is the largest asset freeze conducted by T3 FCU so far, adding to the $100 million in frozen funds since its creation. The unit, established in August 2024, collaborates with global law enforcement agencies to disrupt criminal activities that rely on blockchain transactions.
Tron Reduced Illicit Transactions by $6B
On the other hand, security measures on the Tron network have reportedly reduced illicit transaction volumes on the blockchain by $6 billion. Analysis from TRM Labs shows that 49% of prohibited activity on the blockchain is linked to sanctioned entities, while 32% involves blacklisted funds.
Despite these reductions, the network remains the most used for illegal transactions, accounting for 58% of criminal activity in the sector. Tether’s USDT stablecoin remains the preferred asset for unlawful financial movements.
Tether CEO Paolo Ardoino stated that the operation highlighted blockchain’s role in combating illicit activities. He reaffirmed the commitment to protecting the financial system by working with global law enforcement to dismantle criminal networks.
“Let this serve as a clear warning—criminals who attempt to misuse Tether will get caught,” he said.
Ardoino added that the stablecoin issuer has cooperated with more than 220 law enforcement agencies in 51 countries, freezing over 2,400 addresses holding a total of $2.2 billion.
In November 2023, the company froze $225 million worth of USDT linked to a global romance scam known as “pig butchering.” The following month, it also locked 161 Ethereum wallets, 11 of which contained over $3.5 million in USDT.
