Spanish Authorities Freeze $26.4 Million In Crypto Linked To Money Laundering

According to Cointelegraph, Spanish law enforcement, in collaboration with blockchain firms Tron, Tether, and TRM Labs, has successfully frozen $26.4 million in cryptocurrencies tied to a pan-European money laundering operation. This significant operation was conducted with the support of the T3 Financial Crime Unit, an anti-crime initiative launched by the three blockchain companies in August 2024. The investigation utilized police surveillance to identify the criminal organization, linking its crypto wallets to illicit activities. This was achieved by leveraging Know Your Customer data from service providers, marking the T3 Unit’s largest coordinated freeze to date. This adds to the $126 million recorded in its inaugural year. A spokesperson for the Spanish law enforcement agency Guardia Civil stated that the organization moved millions across borders, using both cash and cryptocurrency to aid criminal groups in laundering their profits. Tron’s security measures have reportedly reduced illicit volumes on its blockchain by $6 billion. TRM Labs discovered that 49% of Tron’s illegal activity is associated with sanctioned entities, while 32% is connected to blocklisted funds. Despite these efforts, Tron remains the leading blockchain for illicit transactions, with 58% of such activities occurring on its network. Tether’s USDT is identified as the most-used asset for criminal activities, according to TRM Labs. The use of centralized stablecoins like USDT and Circle’s USD Coin (USDC) for freezing funds linked to criminal activity is a well-established practice. Stablecoin issuers have mechanisms to block transactions associated with illegal activities. Tether CEO Paolo Ardoino emphasized in a press release that criminals attempting to misuse Tether will be caught. In November 2023, Tether froze $225 million in USDT linked to pig butchering scams, following a U.S. Department of Justice investigation. These scams, prevalent in Southeast Asia, involve coercion and relationship-building to defraud victims, often orchestrated by criminal syndicates. Pig butchering syndicates reportedly launder proceeds through a dark web marketplace called Huione Guarantee, which previously relied heavily on Tether. To circumvent frozen funds, the platform launched its own stablecoin in September, as reported by security firm Elliptic. This development highlights the ongoing challenges in combating cryptocurrency-related crimes and the evolving tactics of criminal organizations.