Tron, Tether, Binance and blockchain analytics firm TRM Labs have quietly ended their T3 Financial Crime Unit, an initiative created to help track and freeze illicit cryptocurrency, following reported problems with slow response times and poor coordination.
The shutdown comes at a time when crypto-related crime remains a growing concern, particularly following Binance’s recent security breach, which had an estimated impact of $6.3 billion. However, T3 was reportedly shut down before the Binance attack on October 29.
Tron, Tether and TRM Labs confirmed that the initiative had ended but did not comment on the reported coordination problems. Binance declined to comment, according to Bloomberg.
T3 helped freeze more than $450 million in illicit crypto
Tron, Tether and TRM Labs launched the T3 Financial Crime Unit in September 2024 to identify and disrupt the movement of illicit funds, particularly USDT stablecoins circulating on the Tron blockchain.
The initiative combined TRM Labs’ blockchain intelligence, Tron’s network visibility and Tether’s ability to freeze USDT held at specific blockchain addresses. The group worked with law enforcement to identify suspicious transactions and immobilise assets linked to criminal activity.
In September 2025, Binance joined the expanded T3+ programme, bringing another major exchange into the collaboration.
By May 2026, T3 said it had frozen more than $450 million in illicit assets while working with authorities across 23 jurisdictions on five continents.
Despite those results, people familiar with the decision told Bloomberg that the alliance struggled with slow responses and a lack of coordination among its members.
The reported breakdown highlights a challenge for efforts to combat crypto crime: identifying suspicious funds is only part of the process. Exchanges, blockchain networks, stablecoin issuers and law enforcement agencies must also work together quickly enough to stop stolen assets from being moved.
Tron and Tether turn to other crime-fighting initiatives
Although T3 has ended, its former participants say they will continue efforts to combat illicit cryptocurrency activity.
A Tron DAO spokesperson told Bloomberg that the programme had concluded but that Tron remained committed to working with law enforcement. The spokesperson also said details of a new initiative would be announced later.
Tether said it would continue working with TRM Labs to disrupt illicit funds. The company also confirmed that it participates in the Beacon Network, a real-time intelligence-sharing initiative launched by TRM Labs in August 2025.
TRM Labs’ global head of policy and government affairs, Ari Redbord, said T3 had achieved significant results and that the Beacon Network builds on that work.
Tether is also working on the Financial Access and Systemic Empowerment Foundation, or FASE Foundation, an initiative announced in October.
However, it remains unclear whether these initiatives will fully replace T3’s former structure or provide the same level of direct coordination between a blockchain network, a stablecoin issuer, an analytics company and a major exchange.
Binance hack highlights the need for coordination
T3’s closure has drawn attention because it happened shortly before one of the largest cryptocurrency thefts reported to date.
On October 29, Binance suffered a breach with an estimated impact of approximately $6.34 billion. The FBI later attributed the attack to North Korea, identifying the operation as TraderTraitor.
Following the incident, cryptocurrency companies and blockchain analytics firms worked to trace and freeze assets connected to the attackers. Tether said it froze approximately $1.5 billion in USDT linked to the breach, while broader industry efforts immobilised billions of dollars in affected assets. These figures may overlap and should not be treated as separate recoveries.
The response showed how stablecoin issuers can help freeze tokens, but it also highlighted the importance of information sharing across the crypto industry.
Tether can freeze USDT at specific addresses, blockchain analytics firms can trace transaction flows, and exchanges can restrict accounts under their control. Working together, these organisations can help stop stolen funds before they are moved through additional wallets or converted into assets that are harder to freeze.
The end of T3 does not mean crypto crime-fighting efforts have stopped. Its former participants say they remain involved in other initiatives. The unanswered question is whether these arrangements can provide the speed and coordination needed to respond effectively when the next major attack occurs.
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