Binance Joins Tron, Tether, and TRM Labs in $250M Crypto Crime Crackdown

Binance Joins Anti-Money Laundering Initiative to Combat Cryptocurrency Crime

Binance, one of the world's largest cryptocurrency exchanges, has joined a new anti-money laundering (AML) initiative aimed at addressing terrorism financing and other criminal activities involving digital assets. This partnership brings together prominent players in the crypto industry, including Tron, Tether, and blockchain intelligence firm TRM Labs. Together, they are working to combat scams, hacks, and money laundering that have impacted billions of dollars in user and business funds globally.

The collaboration has already produced significant results in less than a year. The group has managed to freeze over $250 million in illicit cryptoassets—more than double the amount seized during their first six months. These frozen assets are linked to a wide range of crimes, from major investment frauds and ransomware attacks to blackmail and terror financing. The success of this effort underscores the growing threat to the crypto sector and the increasing effectiveness of coordinated responses.

T3 FCU: A Global Effort Against Illicit Crypto Transactions

The T3 Financial Crime Unit (T3 FCU) is a real-time system designed to track and dismantle illegal blockchain transactions through public-private partnerships. Founding members such as Tron, Tether, and TRM Labs collaborate with law enforcement agencies worldwide to tackle money laundering, investment fraud, extortion, and terrorism financing.

By pooling resources, the group has monitored suspicious deals worth billions of dollars and intercepted high-value assets before they could be hidden in untraceable channels. Recent data from the group indicates that the amounts frozen are spread across thousands of individual cases in over 100 countries.

To expand its reach, the T3+ program now includes exchanges, banks, and other industry participants who can share intelligence in real time. The World Economic Forum recently announced that Binance will be the first to join this initiative, marking a significant step forward for global efforts against financial crime.

Binance’s First Collaboration with T3 FCU

Binance’s initial collaboration with T3 FCU involved freezing nearly $6 million tied to a long-term online fraud known as a “pig butchering” scam, which tricked victims into investing in fake opportunities. This partnership allows Binance’s compliance and security teams to work closely with T3 FCU analysts to flag and freeze suspected funds more quickly than ever before.

Justin Sun, founder of Tron, emphasized that this move would expand existing and new collaborations to curb illicit activity on the blockchain in real time. Paolo Ardoino, CEO of Tether, stated that when companies work together, bad actors have nowhere to hide on the blockchain.

Hackers Are Speeding Up Their Attacks

The alliance comes at a critical time. According to a report by Swiss blockchain analytics firm Global Ledger, over $3 billion in crypto was stolen in the first half of 2025. Some of these attacks occur in seconds, with hackers able to empty an account within less than three minutes of breaching it.

On average, the time from breach to moving funds is about 15 hours, and in approximately 23% of cases, the money is fully laundered before the public becomes aware of the hack. Recovery rates remain extremely low, with only 4.2% of stolen funds addressed in the first half of the year.

Centralized exchanges play a crucial role in theft prevention, but they must act quickly. The report noted that about 15% of illegal cryptocurrency goes through these platforms, giving compliance teams roughly 10–15 minutes to block suspect trades before the funds disappear.

Criticism and Concerns Within the Crypto Community

Despite the successes of the T3 FCU, the initiative has sparked criticism from parts of the crypto community. Tether recently froze $86,000 of stolen USDT, reigniting debates about centralized control in what is otherwise a decentralized ecosystem. Critics warn that allowing stablecoin issuers and exchanges to freeze specific transactions could undermine user autonomy.

However, supporters argue that such measures are essential to protect victims and maintain trust in the system. Industry leaders stress that the best defense against financial crime is collaboration. With Binance now part of the T3 FCU, the group is better positioned to respond swiftly and make it harder for criminals to operate.