Harsh Reaction to Tether Illicit Activity Labeling

Crypto News – A prominent stablecoin company, Tether, has reacted to a report by the United Nations (UN) that purportedly showed their stablecoin’s involvement in illegal activities.

Harsh Reaction to Tether Illicit Activity Labeling

The UN Office for Drugs and Crime (UNODC) division for Southeast Asia and the Pacific released a report on January 15, which discussed the use of cryptocurrency in illicit operations and underground banking.

The report is entitled “Casinos, Money Laundering, Underground Banking, and Transnational Organized Crime in East and Southeast Asia: A Hidden, Accelerating Threat”. According to the report, one of the main platforms used in the area for money laundering is the USDT stablecoin. Particularly mentioned in the research was the growing acceptance of USDT, which is based on the Tron blockchain.

USDT on the Tron blockchain has become a preferred choice for regional cyber fraud operations and money launderers alike due to its stability and the ease, anonymity, and low fees of its transactions,

the UNODC report

Tether Says It Has Taken a Firm Stand Against Illegal Activities in the Past 3 Months

Tether contested the UN research on January 15, pointing out that the agency’s findings had disregarded USDT’s demonstrated track record of working with law enforcement throughout the globe as well as its traceability.

The UN should also discuss how centralized stablecoins can improve anti-financial crime efforts,

Tether

During the previous three months, Tether stated that it had frozen over $300 million in USDT linked to illegal activity. Of those, $225 million had been blocked in November 2023 as part of an American investigation into a human trafficking organization operating in Southeast Asia.

The UN’s assessment singles out USDT highlighting its involvement in illicit activity while ignoring its role in helping developing economies in emerging markets, completely neglected by the global financial world simply because servicing such communities would be unprofitable for them.

Tether