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While discussions and alarming developments continue regarding the cryptocurrency market’s largest stablecoin, Tether (USDT), a report of a cautionary nature has come from the United Nations (UN). The Financial Times reported today that a UN report has identified USDT as a frequently used payment method for money laundering and fraud in Southeast Asia.
United Nations’ Noteworthy Warning on Tether (USDT)
In the report published today by the UN, it was warned that Tether’s issued stablecoin, USDT, has become one of the commonly used payment methods for money laundering and fraud in Southeast Asia.
According to the Financial Times, the UN report states that “USDT is among the most popular payment instruments especially for those using illegal online gambling platforms and laundering money through cryptocurrencies.”
The UN also claimed that the world’s largest stablecoin is widely used in underground fraud, including a scam known as “Pig Butchering.” It is worth remembering that in November 2023, Tether announced that it had assisted the US Department of Justice by freezing approximately 225 million USDT in external, self-hosted wallet addresses associated with an international human trafficking group responsible for a pig butchering scam in Southeast Asia.
The report also highlighted how law enforcement agencies have disrupted numerous money laundering networks involved in the illegal transfer of Tether funds in recent years. For example, in August of last year, Singaporean authorities conducted an operation that led to the dismantling of such a network, recovering approximately 735 million dollars in both cash and cryptocurrency.
Tether Recently Cooperated with US Legislators
Tether CEO Paolo Ardoino, in a letter shared with US legislators in December 2023, announced the inclusion of the US Secret Service and the Federal Bureau of Investigation in its platform for data tracking. This statement was significant as it conveyed the message that Tether’s management is not a black box but rather works in collaboration with lawmakers and law enforcement agencies in various countries.
On the other hand, data supported by The Block also reveals that Tether’s USDT market share in the stablecoin market increased from 50% to 71% throughout 2023.
