Tether, Tron & Europe Freeze $26.4M in Historic Sweep against Crypto Launderers

In a significant crackdown on financial crime, Spanish law enforcement, along with blockchain giants Tron (TRX-USD), Tether (USDT-USD), and TRM Labs, have frozen a hefty $26.4 million in cryptocurrencies. This operation is a part of a broader effort to tackle a sophisticated pan-European money laundering network. “This organization moved millions across borders, using both cash and crypto to help criminal groups launder their profits,” a spokesperson for the Guardia Civil stated in a press release shared with Cointelegraph.

Stablecoins Swing as Double-Edged Swords

The operation showcases how centralized stablecoins like Tether’s USDT can be both a tool for and a target of financial criminals. USDT’s built-in mechanisms allow issuers to block transactions linked to illegal activities, a practice that came in handy in November 2023 when Tether froze $225 million linked to fraud. “Let this serve as a clear warning—criminals who attempt to misuse Tether will get caught,” declared Tether CEO Paolo Ardoino in the press release. Despite these safeguards, stablecoins and platforms like Tron remain hotspots for illicit transactions.

European Union Tightens Crypto Regulation

Parallel to these enforcement actions, the EU is stepping up its regulatory game. Crypto exchanges OKX and Crypto.com have just secured full licenses under the new Markets in Crypto-Assets Regulation (MiCA), enabling them to offer regulated services across the EU. The licenses, granted by the Malta Financial Services Authority, leverage the “passporting” feature of MiCA, allowing these platforms to operate throughout the European Economic Area. Erald Ghoos, OKX Europe CEO, sees this as a “strong foundation” for the crypto industry’s growth in Europe.

Investors can keep abreast of how these events impact market sentiments and track their favorite cryptocurrencies on TipRanks. Click on the image below to find out more.