Spanish Authorities Freeze $26.4M in Crypto Tied to Money Laundering Network

•  Spanish law enforcement, with blockchain firms, froze $26.4M linked to a European money laundering network.
• Tron and Tether cooperated in blocking illicit funds, with Tether freezing over 2,400 addresses worth $2.2 billion.
• Tron’s security measures reduced illicit transactions by $6B, though it remains the most-used network for illegal transfers.

Spanish law enforcement, in collaboration with blockchain firms Tron, Tether, and TRM Labs, has frozen $26.4 million in cryptocurrency linked to a European money laundering network. The operation was conducted under the T3 Financial Crime Unit (T3 FCU), an initiative formed in August 2024 to combat illicit financial activities.

T3 FCU’s Investigation and Findings

Law enforcement instruments, including police surveillance and investigative practices, enabled authorities to reveal the criminal organization. The Know Your Customer (KYC) records maintained by virtual asset service providers served as a vital link that connected various crypto wallets to criminal financial transactions. The Guardia Civil from Spain stated that the criminal group used money transfers and cryptocurrency to launder their criminal earnings across borders.

Tron founder Justin Sun stated that while blockchain technology offers speed and efficiency, it also attracts bad actors. He emphasized that freezing over $26 million in coordination with law enforcement demonstrates how Tron’s transparency makes money laundering more difficult.

The recent asset freeze marks the most significant enforcement action by T3 FCU, adding to a total of $100 million in blocked funds since its inception. The unit works alongside international law enforcement agencies to disrupt financial crimes involving blockchain transactions.

Tether CEO Paolo Ardoino reaffirmed the company’s commitment to aiding law enforcement in dismantling criminal networks. He warned that criminals attempting to misuse Tether’s services would be caught. Tether has collaborated with over 220 law enforcement agencies in 51 countries and frozen more than 2,400 addresses, holding a combined $2.2 billion.

Tron’s Security Measures and Illicit Transactions

Security measures implemented on the Tron blockchain have led to a $6 billion reduction in illicit transactions. TRM Labs’ analysis indicates that 49% of prohibited activity on the network involves sanctioned entities, while 32% is linked to blacklisted funds. Despite these reductions, Tron remains the most used network for illegal transactions, accounting for 58% of the sector’s criminal activity.
Tether’s USDT stablecoin continues to be the preferred asset for unlawful financial movements. In November 2023, Tether froze $225 million in USDT linked to a global scam and later restricted 161 Ethereum wallets, 11 of which contained over $3.5 million in USDT.