Tether Refutes UN Accusations of Enabling Illicit Activities with its Stablecoin
Summary:
Tether, a major stablecoin firm, has countered the United Nations' report that attributes potential illicit uses to Tether stablecoin (USDT), especially for money laundering in Southeast Asia. The firm emphasized on the tracking capability of USDT and its continued collaboration with global law enforcement agencies. Tether has recently frozen more than $300 million in USDT due to illicit activities. The company urged the global community and the UN to raise awareness about blockchain technology's role in mitigating financial crimes.
In response to a report by the United Nations (UN) pointing to Tether's potential role in unlawful activities, the leading stablecoin company has issued a rebuttal. On January 15, UN's Office for Drugs and Crime's Southeast Asia and Pacific division published a study focusing on cryptocurrency's contribution to illicit acts and hidden financial dealings. The document, entitled "Casinos, Money Laundering, Underground Banking, and Transnational Organized Crime in East and Southeast Asia: A Hidden, Accelerating Threat," identified the USDT stablecoin as a significant money laundering instrument in the specified area, with an increasing preference for USDT on the Tron blockchain.
The UN report noted that the Tron-based USDT was widely favored by regional cyber-criminals and money laundering syndicates due to transaction ease, anonymity, low fees, and overall stability. Tether refuted the allegations in the report on January 15, underlining that the UN investigation had overlooked USDT's traceability and its previously demonstrated global law enforcement cooperation. The firm stated that centralized stablecoins could greatly enhance counter-financial crime mechanisms, advocating for continued cooperation on this matter.
Following the controversy, Tether revealed that it had suspended over $300 million in USDT tied to unscrupulous activities in recent months, among them $225 million in November 2023 linked with a Southeast Asian human trafficking investigation. The firm pointed out that while the UN report focused on USDT's illicit uses, it conveniently ignored its role in aiding overlooked and under-serviced developing economies in emerging markets.
Further, Tether clarified that their joint efforts with international law enforcement agencies have enabled exceptional scrutiny, surpassing traditional banking systems that have long been exploited for laundering substantial amounts of money. The company encouraged the worldwide community and the UN to collaborate and spread knowledge about blockchain technology as an effective countermeasure against financial wrongdoings.
This controversy follows Tether's expression of intent to be a “world-class partner to the U.S.” in December 2023, after U.S. lawmakers sought the Department of Justice's intervention over suspicious usage of USDT. Although cryptocurrencies like Bitcoin have been linked to financial crimes and money laundering concerns by global regulatory bodies, recent reports suggest that criminal elements have been shifting towards conventional currencies or alternative cryptocurrencies for illegal transactions in the past few years.
Published At
1/16/2024 12:42:59 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.