Tether says it is disappointed with the UN’s analysis for focusing on risks associated with USDT while ignoring the token’s benefits in developing economies.
The team behind Tether (USDT), the world’s largest stablecoin by market cap, has reacted to a recent report by the United Nations, highlighting USDT as the payment method of choice for scammers and money launderers.
UN Highlights USDT Payment Method for Scammers and Money Launderers
For context, the United Nations Office on Drugs and Crime released a report yesterday indicating the proliferation of an ecosystem of scam and money laundering activities in the Southeast Asia region.
Titled, ‘Casinos, Money Laundering, Underground Banking, and Transnational Organized Crime in East and Southeast Asia: A Hidden, Accelerating Threat’, the study points out the connection between illegal online casinos and crypto exchanges in Southeast Asia.
According to the report, there have been countless incidents where malefactors have used these illegal online betting platforms and related businesses to launder state-backed fiats and crypto.
“Law enforcement and financial intelligence authorities have reported the rapidly growing use of sophisticated, high-speed money laundering … teams specializing in underground Tether,” the report said.
Besides money laundering, the UN report also identified an explosion of scams within the Southeast Asia region, with USDT playing a central role as the preferred payment method for these scammers.
A major part of this scam involves malefactors establishing fake romantic connections with unsuspecting victims to gain their trust. The report stated that once trust has been earned, the scammer lures the victim to transfer huge sums in USDT.
Authorities Mitigate Illicit Activities
Notably, the report noted that law enforcement agencies have made significant progress in curbing these criminal activities. According to the report, authorities have taken down some money laundering networks responsible for transferring illicit USDT funds. A case in point was an operation in August that led to the recovery of $737 million in cash and crypto.
It also mentioned that Tether played a part in dismantling a human trafficking syndicate in the Southeast Asia region. The report pointed out that Tether froze $225 million worth of USDT from the syndicate following a joint investigation involving the U.S. authorities and the OKX crypto exchange.
Commenting on the development, California-based cyber crime expert Erin West cited the stablecoin’s speed and irreversible transactions as the major reasons behind the growing adoption of USDT in illicit activities.
Tether Reacts
Meanwhile, Tether has reacted to the report, stating that it is disappointed with the UN for highlighting USDT’s involvement in criminal activities while ignoring its technological prowess in helping developing economies.
Furthermore, Tether also faulted the analysis for ignoring the traceability of USDT and the company’s track record of partnering with law enforcement agencies globally. The company noted that it offers unparalleled monitoring of USDT tokens, surpassing traditional banking systems.
“Rather than focusing solely on risks, the UN should also discuss how centralized stablecoins can improve anti-financial crime efforts,” it added.
In the meantime, USDT is ranked as the world’s largest stablecoin, with a market cap of $94.94 billion. It is also ranked as the third-largest cryptocurrency behind Ethereum and Bitcoin.
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