USDT Stablecoin Used for Money Laundering and Scams in Southeast Asia, UN Warns
The United Nations (UN) has issued a report highlighting the use of USDT stablecoin for money laundering and scams in Southeast Asia. The report specifically mentions online gambling platforms as popular vehicles for cryptocurrency-based money launderers, particularly those using Tether. The UN also reveals that Tether has been widely used in underground fraud, including romantic scams known as “pig butchering.” Law enforcement agencies have disrupted multiple money laundering networks involved in the transfer of illicit Tether funds in recent years.
Tether Assists US Department of Justice in Freezing Stolen USDT
In November, Tether announced its collaboration with the US Department of Justice to freeze around $225 million in stolen USDT linked to an international human trafficking group responsible for a pig-butchering scam. This highlights Tether’s efforts to combat illicit activities involving its stablecoin.
Singapore Authorities Dismantle Money Laundering Network Involving Tether
Last August, Singaporean authorities dismantled a money laundering network involving Tether, resulting in the recovery of approximately $735 million in cash and cryptocurrency. This demonstrates the ongoing efforts of law enforcement agencies to disrupt illicit activities associated with Tether.
Tether’s Response and Collaboration with Law Enforcement
Tether has not yet responded to requests for comment regarding the UN report. However, Tether CEO Paolo Ardoino previously stated that they have onboarded the US Secret Service and Federal Bureau of Investigation onto their platform to address potential criminal activities.
Tether’s Growing Share of Global Stablecoin Supply
According to data from The Block, Tether’s share of global stablecoin supply increased from 50% to 71% in 2023, indicating its significant growth and influence in the stablecoin market.
Hot Take: USDT’s Role in Money Laundering and Scams
The UN report raises concerns about the use of USDT stablecoin for money laundering and scams in Southeast Asia. Tether’s involvement in freezing stolen funds and its collaboration with law enforcement agencies demonstrate its commitment to combating illicit activities. As Tether continues to dominate the global stablecoin market, it must prioritize measures to prevent its stablecoin from being exploited by criminals. Collaborative efforts between regulators, law enforcement, and cryptocurrency platforms are crucial in ensuring the integrity and security of digital currencies.
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