UN Report: Tether (USDT) Preferred by Money Launderers and Fraudsters in East and Southeast Asia
A recent report by the United Nations Office on Drugs and Crime (UNODC) reveals that criminals in East and Southeast Asia are increasingly using the stablecoin USDT for money laundering and fraud. Specifically, they prefer the Tether-issued stablecoin on the Tron blockchain due to its stability, ease of use, anonymity, and low transaction fees.
Online Gambling Platforms as a Channel for Money Laundering
Fraudsters and money launderers typically channel USDT through online gambling platforms, many of which operate illegally. The UNODC report highlights the emergence of sophisticated money laundering operations across the region, involving the rapid exchange of USDT for fiat currencies.
The U.S. Department of Justice Investigation
In November, Tether froze $225 million worth of USDT in Southeast Asian wallets following an investigation by the U.S. Department of Justice. The addresses linked to these wallets were found to be associated with “pig-butchering” romance scams. In this type of scam, criminals establish relationships with victims online to gain their trust and convince them to invest in cryptocurrency platforms under their control. Once victims have invested significant amounts of money, the scammers disappear with the funds.
The Appeal of Tether for Criminal Activities
Tether’s stability, ease of use, anonymity, and low transaction fees make it an attractive choice for criminals involved in money laundering and fraud in East and Southeast Asia. Additionally, the ability to purchase mule bank accounts across various jurisdictions in the Asia Pacific region for as little as $30 has facilitated these illegal activities.
Hot Take: Tether’s Growing Role in Criminal Activities
The United Nations Office on Drugs and Crime report highlights the increasing use of Tether (USDT) by money launderers and fraudsters in East and Southeast Asia. The stability, ease of use, anonymity, and low transaction fees offered by USDT make it the preferred method for criminals involved in illegal activities. Online gambling platforms, often operating unlawfully, serve as channels for money laundering using this stablecoin. Tether’s freezing of funds linked to “pig-butchering” romance scams underscores its involvement in fraudulent schemes. As cryptocurrencies gain wider adoption, combating their misuse for criminal purposes becomes crucial.
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