Tether’s USDT Stablecoin Fuels Surge in Scams in Asia
Tether’s USDT stablecoin is reportedly being used as a tool by criminal gangs in Southeast Asia for money laundering and operating illegal online gambling platforms, according to a recent report from the UN’s office on drugs and crime. The report highlights the growing use of sophisticated money laundering teams specializing in underground tether. The Financial Times also mentioned a case where a money laundering syndicate in Myanmar and Cambodia advertised USDT on a busy street to exchange “black” tokens for cash.
Tether’s Collaboration with Law Enforcement
Despite its involvement in illicit activities, Tether has expressed its willingness to collaborate with U.S. law enforcement and regulatory authorities. The stablecoin issuer has committed to intensifying efforts against illicit crypto transactions and sharing relevant information with key committees.
Tether’s Actions Against Illicit Activity
Data from Dune Analytics reveals that Tether has already banned over 1,260 addresses associated with illicit activity, resulting in more than $875 million of USDT being held in banned wallets.
Hot Take: Tether Faces Challenges as Its Stablecoin Is Exploited by Criminals
Tether’s USDT stablecoin is facing scrutiny as it becomes increasingly popular among criminal groups in Asia for money laundering and illegal gambling operations. While Tether has shown a willingness to collaborate with law enforcement, its involvement in illicit activities raises concerns about the stability and reputation of the stablecoin. The banning of addresses associated with illicit activity is a step in the right direction, but Tether will need to continue working closely with regulators to address these challenges and ensure the integrity of its stablecoin.
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