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Inside the Underworld: Unveiling the Surge of Illicit Cryptocurrency Transactions on Justin Sun’s Tron Blockchain

Editor in Chief

March 29, 2024

ILLICIT CRYPTOCURRENCY TRANSACTIONS

Inside the Underworld: Unveiling the Surge of Illicit Cryptocurrency Transactions on Justin Sun’s Tron Blockchain

Illicit Cryptocurrency Transactions surged on Justin Sun’s Tron blockchain last year, as reported by a recent study.

Unveiling the Dominance of Illicit Cryptocurrency Transactions on Justin Sun’s Tron Blockchain

In a recent report by TRM Labs, it has been revealed that the total volume of illicit cryptocurrency transactions experienced a decline globally last year. However, amidst this downturn, an alarming trend emerged — an increasing preference for Chinese crypto mogul Justin Sun’s Tron blockchain for illicit activities.

According to the report, in 2023, a staggering 45 per cent of all illicit cryptocurrency volume was hosted on the Tron blockchain, marking a significant rise from the previous year. This surge in illicit transactions on Tron has raised concerns, especially considering its use in drug sales and terrorist financing.

While Bitcoin remains dominant in drug sales, the transaction volume utilizing the Tron blockchain witnessed a remarkable increase. Notably, Tron token TRX recorded the highest growth, with a nearly tenfold increase in volume.

The rise of Tron in illicit cryptocurrency transactions can be attributed to various factors, including its low transaction fees and high speed. These features make it an attractive option for illicit actors seeking to launder funds quickly and cheaply.

Moreover, the availability of stablecoins like USDT on the Tron blockchain further facilitates illicit activities. Tether remains the most used stablecoin in criminal activities, with its prevalence on Tron noted by TRM Labs.

The report also sheds light on the troubling rise of terrorist financing activities on the Tron blockchain. The number of blockchain addresses linked to such activities surged by 125 per cent in 2023, indicating a concerning trend that demands attention and regulatory action.

In addition to its association with illicit activities, Tron and its founder, Justin Sun, have faced scrutiny and legal challenges. The US Securities and Exchange Commission (SEC) filed charges against Sun and Tron Foundation for various violations, including the unregistered sale of crypto asset securities.

Moreover, Circle, operator of the world’s second-largest stablecoin USDC, announced discontinuing support for the Tron blockchain due to risk management considerations. This move highlights the growing concerns surrounding Tron’s involvement in illicit cryptocurrency transactions.

Overall, while the proportion of total illicit funds in the crypto ecosystem has decreased, the rise of Tron as a preferred platform for such activities underscores the need for enhanced regulatory measures and vigilance within the crypto industry. Join the conversation and share your thoughts on this alarming trend. #Cryptocurrency #TronBlockchain #IllicitTransactions #RegulatoryAction

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