Tether responded to the UN report on USDT’s ‘illegal activity’
Major stablecoin company Tether has responded to a United Nations report highlighting the involvement of its Tether stablecoin (USDT) in illegal activities.
The Southeast Asia and Pacific Division of the United Nations Office on Drugs and Crime (UNODC) presented a report on January 15 that focused on illegal activities and the use of cryptocurrencies in underground banks.
Casinos, Money Laundering, Shadow Banking and Transnational Organized Crime in East and Southeast Asia: A Hidden, Accelerating Threat,” the report notes that the USDT stablecoin is one of the main vehicles for money laundering in the region. The report specifically pointed to the popularity of USDT, which is based on the Tron blockchain.
“The USDT on the Tron blockchain has become the preferred choice for regional cyber fraud operations and counterfeiters due to its stability and simplicity, anonymity and low transaction costs,” the UNODC report said.
Tether challenges the UN report and calls for blockchain education
Read more ⬇️https://t.co/RM474wIqo
— Tether (@Tether_to) January 15, 2024
On Jan. 15, in a rebuttal to the U.N. study, Teter emphasized that the agency's analysis “ignored the track record” of the USDT, as well as its record of cooperation with law enforcement agencies internationally. “The United Nations should discuss how a centralized stablecoin can improve anti-financial crime efforts,” Teter said, adding that the organization is committed to cooperation on such issues.
Tether cited the blocking of more than $300 million in U.S. dollars involved in illegal activities in the past few months, including $225 million blocked in November 2023 as a result of the United States' investigation into the Southeast Asia Human Trafficking Association. Teter said:
“The UN review highlights the USDT's involvement in illegal activities, neglecting its role in developing economies in emerging markets only because it is not in their best interest to serve communities that are completely ignored by the global financial world,” he said.
Tether went on to say that in cooperation with international law enforcement, tracking the Tether token “provides unparalleled surveillance beyond the traditional banking systems that have been used to launder large sums of money for decades.” The stablecoin firm called on the international community and the United Nations to expand awareness of blockchain technology to better respond to financial crimes.
Related: TrueUSD stablecoin depegs holders $330M in TUSD
The news comes shortly after Tether announced it wants to become a “world-class U.S. partner” by mid-December 2023, after U.S. lawmakers called on the Justice Department to crack down on illegal use of USDT.
Financial crimes and money laundering issues have been seen as a major concern by global regulators, as has Bitcoin (BTC). However, some reports suggest that criminals have been choosing US dollars or other cryptocurrencies for illegal transactions over the past few years.
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