A recent United Nations report has shed light on the involvement of Tether's USDT stablecoin in money laundering and scams, particularly in Southeast Asia.
A recent United Nations report has shed light on the involvement of Tether's USDT stablecoin in money laundering and scams, particularly in Southeast Asia. The report highlights the prevalence of online gambling platforms, especially illegal ones, as popular channels for cryptocurrency-based money launderers, with Tether being their preferred choice.
Tether's role in underground fraud, including romantic scams known as "pig butchering," is also brought to attention. The report cites an instance where Tether assisted the U.S. Department of Justice in freezing $225 million in USDT linked to an international human trafficking group involved in a pig-butchering scam.
Furthermore, the report acknowledges the efforts of law enforcement agencies in disrupting money laundering networks that utilize Tether. One such operation, conducted by Singaporean authorities in August 2023, resulted in the dismantling of a network and the recovery of approximately $735 million in cash and cryptocurrency.
The UN report's findings raise serious concerns about the misuse of Tether, the world's most valuable stablecoin by market capitalization, in facilitating illegal activities. This could potentially tarnish the reputation of cryptocurrencies and stablecoins as legitimate financial instruments.
Tether CEO Paolo Ardoino announced in December 2023 that the company had onboarded the U.S. Secret Service and Federal Bureau of Investigation onto its platform, and has worked with regulators to freeze assets that belong to sanctioned individuals.
Let us know what you loved about this article, what could be improved, or share any other feedback by filling out this short form.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
