Tether Responds to UN Report Alleging Involvement in Illicit Activity, Disputes Claims
Major stablecoin firm Tether has responded to the United Nations (UN) report highlighting the alleged involvement of the Tether stablecoin USDT in illicit activity.
Tether Challenges UN Report and Calls for Blockchain Education
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— Tether (@Tether_to) January 15, 2024
On January 15, the UN Office for Drugs and Crime (UNODC) released a report titled “Casinos, Money Laundering, Underground Banking, and Transnational Organized Crime in East and Southeast Asia: A Hidden, Accelerating Threat.”
The report emphasized the increasing prevalence of USDT on illegal online gambling platforms, especially on the Tron blockchain, making it a favored choice for cryptocurrency-based money launderers.
The UN report indicates that Tether’s digital token, a stablecoin pegged to the US dollar, has become a preferred choice for regional cyber fraud operations and money launderers due to its stability, ease of use, anonymity, and low transaction fees. The report points to the rapid growth of sophisticated, high-speed money laundering teams specializing in underground tethering.
Also, online gambling platforms, particularly those operating illegally, have become popular vehicles for cryptocurrency-based money launderers in the region, with Tether playing a significant role. The report suggests that the evolution of cryptocurrency, along with technological developments, has empowered organized crime gangs in Southeast Asia to create a parallel banking system using new technologies.
The UN report specifically mentioned Tether’s involvement in various fraudulent activities, including the notorious “pig butchering” romantic scams. However, Tether had previously acknowledged assisting the US Department of Justice in
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