Tether, the issuer of the USDT digital currency, has recently come under increasing regulatory scrutiny for its involvement in major illegal transactions. It is reported that the pressure of this scrutiny comes from the connection between its digital currency and multiple illegal financial activities.

On July 3, a shocking kidnapping case occurred in the Tseung Kwan O area of ​​Hong Kong. A 3-year-old boy was kidnapped in a shopping mall. After committing this crime, the kidnappers demanded a ransom of up to US$660,000 from the boy's family, which is equivalent to about HK$5.15 million. The amount of the ransom is shocking and also reflects the seriousness of the case.

Hong Kong kidnappers demand USDT ransom

In the kidnapping of a 3-year-old boy from a shopping mall in Tseung Kwan O, Hong Kong, the kidnappers took an unusual approach to their ransom demands. They instructed the boy's parents to use the Telegram messaging app and purchase USDT (Tether) worth $660,000 from an offline over-the-counter (OTC) store as a means of ransom payment. In their communications with the kidnappers, the parents were sternly warned not to seek help from the police, a request apparently intended to ensure the safety of their child during the transaction.

Faced with this emergency, the Organized Crime and Triad Bureau (OCTB) of the Hong Kong Police responded quickly and immediately launched an investigation. Late in the night of July 3, police detectives conducted a detailed review of the surveillance footage of Tseung Kwan O Plaza and its surrounding areas, trying to capture the whereabouts of the kidnappers. Through overnight efforts, the police successfully rescued the kidnapped boy at 5:25 am on July 4 and arrested the suspect, demonstrating the police's efficient ability in combating crime.

In addition, this kidnapping case also reflects the current crime situation facing Hong Kong. According to statistics, in the first five months of this year, the violent crime rate in Hong Kong increased by 9.4% compared with the same period last year, and the number of cases increased from 3,872 in the same period of 2023 to 4,237. This upward trend shows that Hong Kong still faces considerable challenges in maintaining social order.

Large amounts of illegal use of USDT

The USDT stablecoin issued by Tether has attracted widespread attention due to its use in illegal transactions. In 2023 alone, the amount of illegal transactions involved by Tether reached $19.3 billion, which is a decrease from $24.7 billion in the previous year, but the figure is still staggering. Especially on the Tron blockchain, USDT has become the preferred currency for terrorists to raise funds. The report released by the United Nations also pointed out that stablecoins have played an important role in money laundering and fraud activities in Southeast Asia.

In China, Sichuan police recently successfully cracked an underground bank case that used USDT for illegal foreign exchange transactions. The illegal transaction volume of the underground bank reached at least 13.8 billion yuan (about 1.9 billion US dollars). This criminal group mainly operates in Chengdu and provides illegal financial services to individuals who want to smuggle drugs, cosmetics or purchase assets overseas. Law enforcement agencies arrested 193 suspects in the nationwide operation and froze assets worth 149 million yuan.

This series of events highlights the prevalence of USDT in illegal financial activities and the challenges faced by global law enforcement agencies in combating illegal transactions using digital currencies. As digital currencies become more popular, how to strengthen supervision and prevent them from being used for illegal activities has become an urgent issue to be resolved. #香港 #金融犯罪 #Tether #USDT #监管难题

Conclusion:

Recently, with the kidnapping of a 3-year-old boy in Tseung Kwan O, Hong Kong, and the use of USDT issued by Tether in multiple illegal transactions, we have seen the dark side of digital currency in criminal activities. In this kidnapping case, the kidnappers demanded ransom in USDT, which not only highlights the convenience of USDT in illegal transactions, but also exposes its regulatory loopholes. Globally, from the United Nations report to the underground bank case uncovered by the Sichuan Provincial Police in China, it is reflected that USDT has become a high-risk tool for money laundering, fraud and even terrorist financing.

In the face of these challenges, strengthening international cooperation, improving regulatory technology, and formulating stricter laws and regulations have become the only way to combat illegal digital currency transactions. At the same time, public education and raising awareness of digital currency risks are equally important. Only through multi-faceted efforts can we effectively curb the circulation of digital currencies such as USDT in illegal financial activities and protect social security and financial stability.