Tether disputes claims by the United Nations Office on Drugs and Crime (UNODC) that criminals are using USDT to launder money and commit fraud in Asia.
According to a new report from UNODC, criminals in East and Southeast Asia prefer to use USDT on the Tron (TRX) blockchain due to its stability, convenience, anonymity and low transaction fees.
The report states that USDT, the largest stablecoin by market cap, is manipulated by money launderers and fraudsters, often through illegally operating online gambling platforms.
Tether freezes $225 million USDT in DOJ investigation
As evidence, the UN report cites several examples, including when Tether froze $225 million worth of USDT in certain Southeast Asian wallets following an investigation by the US Department of Justice (DOJ) in November. The investigation claimed the addresses were linked to âpig slaughterâ romance scams.
However, he argues that cooperation with law enforcement is evidence of the opposite.
âThrough our collaboration with global law enforcement agencies, including the US Department of Justice (DOJ), the FBI, and the USSS (recently incorporated into the Tether platform), the monitoring of Tether tokens, which have been proven for decades as a means of laundering significant amounts of money, can result in fines and penalties for them.â It provides unique control that exceeds traditional banking systems. By using public blockchains, Tether tokens make it possible to meticulously track every transaction, thus making it an impractical option for illegal activities.
