TRMLabs

A shocking report from TRM Labs recently revealed: from North Korean hackers, Mexican drug gangs, Russian mafia to sophisticated crypto scams on Telegram—all rely on an underground network in China to launder digital money amounting to billions of dollars. This is not just about covert transactions on the blockchain, but a highly sophisticated illegal financial system run by Chinese criminal organizations operating transnationally.

The Spanish government has just announced the arrest of 23 individuals and the seizure of $26.4 million thanks to the support from the T3 Financial Crime Unit (T3 FCU). This is the largest bust of T3 to date, dismantling a transnational financial crime network in Europe.
The Largest Arrest by T3 FCU
According to a statement from the T3 Financial Crime Unit, this organization has helped Spanish authorities freeze $26.4 million related to a European financial crime organization. This is noted as the largest asset seizure the group has participated in since its inception last year. To date, T3 has frozen $126 million.

A recent investigation by blockchain intelligence company TRM Labs has revealed that the Houthi group in Yemen has allegedly utilized over $900 million in cryptocurrency transactions to circumvent U.S. sanctions. These funds, routed through eight specific blockchain addresses, were reportedly funneled to high-risk entities, potentially funding military acquisitions, including drones and counter-drone systems.

The analysis shows these addresses were included in the U.S. Treasury's Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list as of April 2. Tracking the on-chain flows, TRM Labs traced a significant volume of cryptocurrency moving toward associates of Iran-based financier Sa’id al-Jamal and a Russian intermediary with links to a Chinese drone manufacturer.

This activity strongly suggests that the group is leveraging blockchain-based financial systems to acquire defense technology. Enhanced UAV capabilities observed in the Houthi arsenal align with the timeframe and scale of these crypto-linked transactions, supporting the firm’s conclusions.

🌍 Crypto Becomes a Tool for Sanctions Evasion

The Houthi movement, which has governed large parts of Yemen since 2014, has drawn increasing global attention for its actions in the Red Sea, specifically targeting commercial vessels in response to conflict in Gaza. The U.S. has officially designated the group as a Foreign Terrorist Organization (FTO), deploying sanctions and military efforts in response.

In an apparent response to restrictions on traditional banking channels, the Houthis have turned to digital assets as a financial lifeline. This mirrors strategies employed by other sanctioned entities, such as North Korea, which has been linked to cyberattacks on crypto platforms to fund nuclear ambitions. Groups like Hamas and Hezbollah have also been flagged by OFAC for their use of digital currencies to move money across borders.

What’s particularly noteworthy is the Houthis’ use of cryptocurrency mining—reportedly underway since 2017. By exploiting browser-based mining services such as the now-defunct Coinhive, and operating through Yemen’s national ISP, they managed to quietly build a new stream of revenue with minimal hardware requirements.

📈 Rising Crypto Adoption Amid Sanctions in Yemen

Interestingly, beyond the context of sanctions evasion, Yemen is seeing a broader surge in crypto usage. With formal financial systems under stress, ordinary citizens are turning to decentralized finance (DeFi) protocols and peer-to-peer networks for cross-border transactions and asset storage. According to TRM Labs, 63% of Yemeni crypto activity now occurs on DeFi platforms, with only 18% flowing through centralized exchanges.

This trend is fueled by the appeal of trustless, intermediary-free platforms in a country where traditional banking remains largely inaccessible. While Yemen faces significant obstacles—including limited internet access, a lack of crypto literacy, and the absence of regulatory guidance—adoption continues to grow organically, driven by necessity.

TRM Labs concludes that the dual use of crypto—both by politically motivated actors and by everyday users seeking financial stability—underscores the complex role of blockchain technology in conflict zones and underbanked regions.
$#CryptoNews #BlockchainIntelligence #TRMLabs #YemenCrypto #SanctionsEvasion

According to a new report from TRM Labs, more than half of illegal crypto transactions in 2024 occur on the Tron network, with a total value of up to $26 billion. This makes Tron the primary platform for illegal activities, surpassing Ethereum and Bitcoin.
Why Does Tron Attract Bad Actors?
Tron is a blockchain with low transaction fees, supporting many major stablecoins like USDT, along with the ability to deploy smart contracts, making it the top choice for fraudsters and hackers.