Binance's Alliance Dissolved Preceding Major Hack, CZ Advocates for New Security Collaboration

The Disbandment of the T3 Financial Crime Unit

The T3 Financial Crime Unit, which incorporated key players in the cryptocurrency space such as Tether, Tron, TRM Labs, and Binance, was disbanded just prior to the theft of $6.3 billion from Binance, marking a significant moment in the ongoing battle against crypto-related crime. According to a report from Bloomberg, this unit, operational for two years and credited with freezing around $450 million in unauthorized crypto assets, ceased its operations in late August. Sources familiar with the situation indicated that the unit had been facing challenges related to slow response times and poor collaboration among its members.

Confirmation of Closure and Future Initiatives

Both Tron, Tether, and TRM Labs have confirmed the closure of T3 to Bloomberg, although Binance, which joined the alliance in 2025, chose not to respond to inquiries regarding the matter. The T3 unit's presence on the social media platform X, where it had over 1,400 followers, has also been eliminated, despite users referencing it until the end of August.

In the wake of its dissolution, Tron hinted at a forthcoming initiative, while Tether announced its continued efforts alongside TRM Labs to combat financial crimes. Notably, TRM Labs had previously rolled out the Beacon Network in 2025, a platform designed for real-time intelligence sharing that helps track and halt illegal transactions before they could be finalized.

Statistics and Impact of T3

Statistics from T3 revealed that since its inception in September 2024, it had managed to freeze upwards of $450 million in illicit USDT and noted a significant increase in seizure of illegal funds in 2025 compared to the previous year, having cooperated with law enforcement across 23 different regions. When Binance joined the T3 unit in September 2025, Nils Andersen-Röed, then the head of Binance’s Financial Intelligence Unit, remarked on the company's commitment to working diligently with industry peers and law enforcement to tackle illegal activities effectively.

Response to the Hack and Call for Collaboration

Following the record-breaking hack that occurred on October 29, Binance co-founder Changpeng Zhao (CZ) advocated for forming a cross-crypto security alliance. He argued that such cooperation would allow the crypto industry to better anticipate attack patterns, share findings from audits, learn from past incidents, and coordinate asset freezes swiftly. In a response to the hack, Tether disclosed that it had succeeded in freezing over $1.5 billion in USDT that had been taken in the breach, highlighting the pressing need for stronger inter-industry collaborations as the cost of operations—including penalties and losses from hacks—may amount to over 50% of Binance's revenue earning capacity in today's challenging crypto environment.