Law Enforcement and Private Sector Initiatives Freeze Over $300 Million in Crypto
Two simultaneous efforts by law enforcement and private companies have resulted in the freezing of more than $300 million in cryptocurrency as part of an anti-fraud initiative.
As reported by Bleeping Computer, blockchain intelligence firm TRM Labs, along with TRON, Tether, and Binance, participated in the T3 Financial Crime Unit (T3 FCU) initiative, which was launched in September 2024.
Referred to as the T3+ Global Collaborator Program, this operation has seized upwards of $250 million in criminal assets worldwide since its inception.
“Since its inception in September 2024, T3 FCU has worked closely with law enforcement agencies worldwide to identify and disrupt criminal networks,” TRM Labs announced this week.
“Freezing over $250 million in illicit assets in less than a year is a powerful testament to what’s possible when the industry comes together with a shared goal,” commented Tether CEO Paolo Ardoino.
The T3 initiative has aided global law enforcement in efforts to combat money laundering, investment fraud, and various other financial crimes.
Collaboration Between US and Canada Freezes $74 Million in Crypto
The second initiative involved collaboration among agencies from the United States and Canada, focusing on several operations that led to the freezing of $74 million in cryptocurrency.
A Chainalysis report released on Thursday detailed Project Atlas, led by the Ontario Provincial Police (OPP), along with Operation Avalanche, directed by the BC Securities Commission, which have resulted in the seizure of tens of millions in illicit crypto assets.
For example, Project Atlas aimed at identifying and disrupting investment scams, working in conjunction with various law enforcement and private-sector stakeholders.
“Project Atlas identified more than 2,000 crypto wallet addresses linked to fraud victims across 14 countries, including Canada, the US, Australia, Germany, and the UK,” the report stated.
Notably, the initiative has successfully prevented over $70 million in cryptocurrency from being stolen.
Additionally, Operation Avalanche, with support from Chainalysis, uncovered losses exceeding $4.3 million connected to Ethereum-based fraud schemes. This operation involved multiple Canadian regulatory partners, including the Ontario Provincial Police, Vancouver Police, and Delta Police Department.
“Fraudulent investment schemes remain a global issue, especially with crypto, where regulation is still catching up in many jurisdictions,” said Natalie Newson, CertiK’s Senior Blockchain Investigator, in an interview with Cryptonews.
Newson noted that Ponzi schemes continue to be prevalent in the crypto space due to its decentralized characteristics. The allure of high and quick returns often attracts investors, taking advantage of regulatory enforcement gaps.
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“Maintaining a healthy skepticism toward investments that lack transparency or are not registered with appropriate regulatory bodies is essential in safeguarding assets,” she added.
