Major Stablecoin Firm Tether Responds to UN Report on Illicit Activity
Tether, a leading stablecoin firm, has issued a response to a United Nations (UN) report that highlighted the alleged involvement of its stablecoin USDT in illicit activities. 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 use of USDT on illegal online gambling platforms, particularly on the Tron blockchain, making it attractive to money launderers.
Tether’s Role in Money Laundering
The UN report pointed out that Tether’s stability, ease of use, anonymity, and low transaction fees have made it a preferred choice for cyber fraud operations and money laundering in the region. It highlighted the growth of sophisticated money laundering teams specializing in underground tethering. Additionally, the report mentioned Tether’s involvement in fraudulent activities such as romantic scams.
Law Enforcement Actions Against Tether Money Laundering Networks
Law enforcement agencies have taken action against several money laundering networks dealing with illicit Tether funds. In one operation conducted by Singaporean authorities, approximately $735 million in cash and cryptocurrency was recovered. Jeremy Douglas of the UN’s Office on Drugs and Crime stated that organized crime has created a parallel banking system using new technologies.
Tether Challenges UN Findings and Highlights Collaboration with Law Enforcement
In response to the UN report, Tether challenged the findings and emphasized its collaboration with global law enforcement agencies. The company argued that the traceability of USDT was ignored and highlighted its track record of working with organizations like the Department of Justice (DOJ), Federal Bureau of Investigation (FBI), and United States Secret Service (USSS). Tether also called for global cooperation and increased awareness of blockchain technology to combat financial crimes.
Tether’s Commitment to Transparency and Security
Tether emphasized its commitment to transparency and accountability in digital currencies. The company stated that USDT tokens, operating on public blockchains, allow for meticulous tracking of transactions, making it impractical for illicit activities. Tether has frozen over $300 million as part of its efforts to combat criminal activities. It also highlighted its security measures, including collaboration with Chainalysis to develop tools for monitoring secondary markets.
Hot Take: Tether’s Response to UN Report
Tether has responded strongly to the UN report alleging its involvement in illicit activities. The stablecoin firm disputes the claims, highlighting its collaboration with law enforcement agencies and the traceability of USDT transactions. Tether calls for global cooperation and increased awareness of blockchain technology to address financial crimes effectively. The company reiterates its commitment to transparency and accountability in digital currencies and emphasizes its security measures, such as freezing funds and collaborating with Chainalysis. Tether invites the UN to engage in collaborative dialogue and aims to promote a more informed and productive environment.
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