New York, Monday, January 22, 2024 – In response to a recent United Nations (UN) report that alleged Tether’s involvement in illicit activities, the Stablecoin issuer has expressed disappointment, contending that the assessment disproportionately focuses on such allegations while neglecting the positive impact of USDT on emerging markets.
The United Nations Office on Drugs and Crime warned on January 15, 2024, that online gambling platforms, especially those that are operating illegally, have emerged as among the most popular vehicles for cryptocurrency-based money launderers, particularly for those using Tether or USDT on the TRON25 blockchain.
Tether and TRON25 had already published their stance on the UN reports and said that they were ready to work with the UN. 1
In the report titled Casinos, Money Laundering, Underground Banking, Transnational Organized Crime in East and Southeast Asia: A Hidden and Accelerating Threat (Published January 15, 2024). 2 The UNODC claimed that illegal online gambling platforms have emerged as the most popular methods for cryptocurrency-based money launderers, particularly for those using Tether or USDT on the TRON25 blockchain.
“USDT on the TRON blockchain has become a preferred choice for regional cyberfraud operations and money launderers alike due to its stability and the ease, anonymity, and low fees of its Transactions. Between September 2022 and September 2023, a recent fund audit of USD T-based transactions by one independent blockchain data analysis company found transactions totaling 17.07 billion USDT connected to underground currency exchanges, illegal commodity trades, unlawful collection and payment processes, and various criminal activities,” the UNDOP report claimed.
“More recently, in November 2023 an investigation led by the United States Department of Justice in collaboration with cryptocurrency exchange OKX and Tether led to the voluntary freezing of US $225 million in USDT connected to a Southeast Asia-based human trafficking and pig butchering cyberfraud ring,” the report claimed.
Tether defended its position by highlighting collaborations with global law enforcement agencies, including the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), and the United States Secret Service (USSS). The company asserted that its monitoring measures surpass traditional banking systems and emphasized its efforts to combat criminal use of crypto assets.
In contrast to the UN’s emphasis on risks, Tether suggested a broader discussion on how centralized Stablecoin could contribute to anti-financial crime efforts. This statement follows the release of a UN Office for Drugs and Crime (UNODC) report linking USDT to money laundering in Southeast Asia and the Pacific.
Tether called for a comprehensive dialogue with the UN to explore modern strategies for combating financial crimes on blockchain platforms, expressing a willingness to collaborate on such initiatives.
- Tether: https://tether.to/es/tether-challenges-un-report-and-calls-for-blockchain-education/[↩]
- UNODC: https://www.unodc.org/roseap/uploads/documents/Publications/2024/Casino_Underground_Banking_Report_2024.pdf[↩]
