Spanish law enforcement agencies have frozen $26.4 million in illicit crypto funds.
The authorities partnered with Tron, Tether and TRM Labs to achieve this feat.
There is a growing effort to combat crypto crime in the industry.
Spanish law enforcement agencies have taken significant action against international financial crypto crime in partnership with blockchain giants Tron, Tether, and TRM Labs. to Cointelegraph, they recently froze $26.4 million of digital assets linked to a pan-European money laundering syndicate. This operation is part of a broader effort to clamp down on illicit activity using digital currencies.
Crypto Crime: Coordinated Effort to Crackdown on Criminal Groups
The coordinated effort, led by Spain’s Guardia Civil, involved a detailed investigation into a criminal network. The bad actors reportedly moved large sums across borders using traditional cash and virtual assets.
The T3 Financial Crime Unit supports the operation launched in August 2024 by Tron, Tether, and TRM Labs. The authorities used Know Your Customer (KYC) data and blockchain technology to trace illicit crypto wallets to their criminal origins.
This investigation resulted in the freezing of $26.4 million in digital assets linked to the network. The seizure is the largest coordinated freeze by the T3 Unit, surpassing the $126 million halted in its first year.
In early January, Coinspeaker that the T3 FCU froze $100 million in USDT, which was believed to be proceeds from illicit activities. The unit analyzed $3 billion in USDT transactions across five continents, leading to a catch.
This marks a significant milestone in the unit’s ongoing efforts to combat crypto-related crime. This latest success highlights the importance of international collaboration between law enforcement agencies and blockchain firms in addressing crypto-related crimes.
Blockchain Firms Strengthen Stablecoins as Shields against Financial Crime
Despite T3 FCU’s efforts to combat illicit activities, its networks face challenges, and illegal transactions continue. The Tron blockchain is under investigation for ongoing illicit activities.
TRM Labs reported that 49% of its illegal activities involve sanctioned entities, and 32% are linked to blocklisted funds. Tron remains the top blockchain for illicit transactions, making up 58%.
On the other hand, due to its centralized structure, Tether’s USDT is in crime. In November 2023, after a US Department of Justice probe, the company froze $225 million in USDT linked to pig butchering scams.
Pig butchering or slaughtering has become a popular scam method hackers use within the crypto ecosystem. This ranks alongside direct wallet exploits that Web3 entities face in general.
Using stablecoins in financial crime remains a concern, but blockchain firms push for greater transparency and stronger security measures. For instance, Tether developed built-in features that allow issuers to block transactions tied to illegal activities.
These efforts aim to safeguard the integrity of their networks. This technological advancement makes these protocols essential tools for anti-crime efforts.
Tether CEO Paolo Ardoino warned criminals that anyone attempting to misuse Tether will be caught. He emphasized that the company is committed to preventing illicit activities on its platform.
