United

The United Nations (UN) reportedly identified issuer of the biggest <a href="https://news.todayq.com/uk-regulatory-roadmap-unveiled-for-stablecoins/" target="_blank" rel="noopener noreferrer nofollow">stablecoin</a>, USDT, Tether as a prominent tool for money launderers and fraudsters in Southeast Asia. The UN’s Office on Drugs and Crime published a report on Monday revealed that USDT is at the epicenter of an escalating trend of scams. However, these fraudulent activities include making up deceptive romantic connections to convince victims to transfer sums. This tactic is also known as “pig butchering.” Tether becoming a new hub for scammers? 
According to a report by the Financial Times, the UN highlights law enforcement and financial intelligence authorities had observed a rapid increase in the use of high-speed money laundering. This has reinvigorated age-old practices among organized crime gangs in Southeast Asia.&nbsp;
The UN report highlights that online <a href="https://news.todayq.com/uk-government-firmly-disagrees-with-classification-of-crypto-with-gambling-lists-several-harms/" target="_blank" rel="noopener noreferrer nofollow">gambling platforms</a> became favored channels for crypto based money launderers. However, Tether is the preferred choice of these scammers.
It added that Jeremy Douglas from the UN’s Office on Drugs and Crime expressed concerns regarding the situation. He stated that “Organized crime has effectively created a parallel banking system using new technologies, and the proliferation of loosely or entirely unregulated online casinos together with crypto has supercharged the region’s criminal ecosystem.”
Tether’s digital token, a stablecoin pegged to the US dollar, offers traders the ability to transfer seamlessly in and out of crypto trades. This feature made the USDT distinguishable it from other major digital assets like bitcoin. After all, Tether’s USDT is the biggest stablecoin with a market cap of around $95 billion. Its competitor, USDC, the second biggest stablecoin, holds a market cap of over $25 billion. Biggest stablecoin in trouble? 
The report mentioned that the authorities have taken action against several money laundering networks associated with illicit Tether funds. Tether itself froze $225 million worth of its tokens last November in connection with a “pig butchering” and human trafficking syndicate in Southeast Asia. This was followed by a joint investigation with US authorities and crypto exchange OKX.
Erin West, a criminal prosecutor and cybercrime expert, explained that Tether’s digital coin is favored by pig butchers due to its promise of rapid and irreversible transactions on a blockchain.&nbsp;
The UN report highlights the urgent need for robust crypto linked regulations to address the growing illicit activities linked to stablecoins like Tether. Despite increased scrutiny and regulatory actions in the US and beyond, criminal groups continue to exploit Tether’s token as an efficient means of fund movement.
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UN accuses this crypto for fueling money laundering scams; Report

Todayq News

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