Stablecoin issuer Tether has faced renewed criticism after allegations of USDT being used to finance terrorism. The largest stablecoin by market capitalization has previously been criticized for its alleged use in government to bypass sanctions and other broader illicit uses including money laundering. Tether continues to deny these allegations and has pledged to support the authorities.
Consumer research accuses Tether of financing terrorism
She launched a non-profit company, Consumers’ Research. A campaign to show Tether's links to terrorist organizations and human trafficking groups along with the Chinese and Russian governments. According to Will Heald, CEO of the consumer advocacy firm . Tether is used by Russia and other countries to avoid sanctions.
This comes months after the stablecoin issuer was accused of similar points following the Hamas attacks on Israel on October 7. The Israeli government froze about 100 accounts on Binance. While Tether froze assets worth $800,000.
“Russia has used it to evade monetary sanctions, countries like Venezuela have used it. And then it appears to be used by human traffickers... Last year, Tether was linked to nearly $20 billion in illicit transactions. With known terrorism-related financial transactions in the millions.” .
In addition, the company is linked to criminal activities. He hinted that the company would become the next FTX. Cryptoassets remain linked to illegal financial activities, as authorities try to curb criticism of their hard-to-trace capabilities.
The organization launches an advertisement
A new billboard accusing Tether of corruption has appeared in New York's Times Square with the caption "Tetheredtocorruption." Aside from allegations of using it to finance gangs and bypass government sanctions. The organization called out Tether's refusal to undergo an audit to ensure it is 1:1 backed. To draw the lines of alleged corruption, they named the company the next FTX.
Meanwhile, the cryptocurrency company debunked claims that the asset is 100% backed. Adding: “It is worth noting that Tether has integrated the FBI and US Secret Service into its platform to enhance efforts against criminal activity involving stablecoins.”