Tether, Tron, and TRM Labs dissolved the T3 Financial Crime Unit in late August 2026, according to Bloomberg reporting reviewed by Bitcoin Magazine on November 5. The shutdown came roughly two months before the October 29 Binance hack, which resulted in a $6.34 billion loss.
T3 was established in September 2024 as a public-private partnership to combat illicit use of USDT on the Tron blockchain. TRM Labs supplied blockchain intelligence, Tron provided network visibility, and Tether wielded token-freezing authority at the issuer level. The unit had frozen $450 million in illicit assets as of May 2026 and was working with 23 jurisdictions.
The alliance fractured over slow response times and lack of coordination among members, according to people familiar with the matter. The three founders did not publicly disclose the shutdown at the time.
A Tron DAO spokesperson told Bloomberg: “While the very successful T3 program has concluded, Tron remains committed to working to help stop illicit activities on the blockchain, in partnership with law enforcement.”
T3+ launched in August 2025 with Binance as its first member, following T3’s announcement that it had frozen $250 million in illicit assets in less than a year. The joint T3+ effort with Binance froze $6 million in stolen funds in its first operation.
Ari Redbord, global head of policy and government affairs at TRM Labs, said “T3 achieved extraordinary things” and noted that “Beacon Network builds on that work.” Beacon Network, a successor initiative, launched in August 2025. Tether has since unveiled the FASE Foundation on October 31, 2026, following the Binance hack.
The Financial Action Task Force cited T3 in November 2025 guidance as a leading model for public-private enforcement. Tron has promised to announce a new anti-crime initiative, though details remain unspecified.
Following the Binance hack, blockchain analysis linked the attack to North Korea. Elliptic reported that $220 million in stolen TRX was laundered through the Tron blockchain. Tether froze $1.567 billion in USDT after the breach, bringing total frozen or seized stolen assets to $2.85 billion.
