A recent report by blockchain analysis firm TRM Labs points to a decline in illegal cryptocurrency transactions around the world and a marked increase in interest in the Tron blockchain, led by Chinese entrepreneur Justin Sun. It highlights that there is. The report, released on Wednesday, revealed that the Tron blockchain would handle 45 percent of illegal cryptocurrency transactions in 2023, up from 41 percent a year earlier.
Tron emerges as a haven for illegal activities
The report highlights a significant increase in the use of TRON for illegal activities such as drug trafficking and terrorist financing. Notably, the number of blockchain addresses associated with terrorist financing on Tron, specifically those receiving the stablecoin Tether (USDT), skyrocketed by 125% in 2023. TRM Labs has identified Tether as the most used stablecoin for criminal activity.
Changes in trading trends
While Bitcoin remains the dominant choice for drug-related transactions, the volume of transactions powered by the Tron blockchain has increased significantly, increasing four times year over year. Additionally, Tron’s native token, TRX, has experienced impressive growth, with trading volumes increasing nearly 10 times his, especially in the area of online fentanyl sales.
Factors behind Tron’s popularity
Angela Ang, senior policy advisor at the TRM Institute, said TRON’s appeal to illegal actors may be due to its minimal transaction fees and quick transaction speeds, which make it easier to launder money. It suggests that there is a possibility of Additionally, the proliferation of stablecoins like her USDT on the Tron network serves as another catalyst, especially favored by organizations involved in terrorist financing.
Silence from Tron and Tether
Despite the revelations, neither Tron nor Tether had any immediate comment on the report’s findings and have shown reluctance to engage in discussions surrounding illegal activity on their respective platforms.
Controversy over Tron
Founded by Justin Sun in 2017, Tron has increasingly become embroiled in further controversy due to regulatory scrutiny. The U.S. Securities and Exchange Commission (SEC) has charged the Sun & Tron Foundation with engaging in unregistered sales and manipulation of crypto securities in the TRX secondary market.
Migration of support to Tron
Circle, the company behind USDC, the world’s second-largest stablecoin, recently announced its decision to discontinue support for the Tron blockchain citing risk management considerations, leading to widespread sentiment towards Tron within the crypto ecosystem. It further hints at change.
Global trends in illegal crypto trading
Despite Tron’s soaring profile, TRM Labs points out that by 2023, total illicit funds within the cryptocurrency ecosystem will decline by 9% overall, with a corresponding decline in total transaction volume by one-third. ing. This decline can be attributed to increased government enforcement actions and increased sanctions imposed by the U.S. government on crypto-related entities and individuals.
In summary, while the global landscape of illicit cryptocurrency transactions is shrinking, the rise of the Tron blockchain highlights the evolving dynamics within the cryptosphere, requiring increased oversight to address new challenges. and urges regulatory response.
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