Tether (USDT) Is The Heart Of Scams Money Laundering, Gambling, Etc: UN 

A new government report noted that the majority of the bad actors are using USDT stablecoin in drugs and crime-centred activities. 

USDT is the top stablecoin by market. Tether is the backend firm behind this stablecoin. Tether is a subsidiary of Bitfinex crypto exchange. Stablecoins help crypto traders to shift th funds from one exchange to another without any permission of middlemen or third-party firms under a permission-less medium.

On 15 Jan 2024, A report by the UN’s office on drugs and crime was published and dragged attention toward the misuse of USDT stablecoin.

The report noted that the majority of the illegal activities e.g. money laundering, fraud activities, and criminals involved the use of USDT across Asia. 

In recent years, money laundering activities surged rapidly and the majority of the cases were found linked with USDT stablecoin use. 

The report also noted that the crypto & blockchain sector is not only evolving with innovations but also the surging bad activities by the crime gangs using black market casinos to launder illicit funds.

Jeremy Douglas of the UN’s Office on Drugs and Crime told the Financial Times (FT) that crime gangs created a very big parallel decentralised banking system using cryptocurrencies and they are easily running unregulated online casinos together with crypto has supercharged the region’s criminal ecosystem.

This is a bitter reality that the use of stablecoins in illegal activities is possible but also there is a very big truth that USDT & other cryptocurrencies can be used to trace all the bad actors involved in any particular illegal financial transactions. 

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In the last few years, many crypto exchanges e.g. Binance, and OKX, collaborated with enforcement agencies to catch & trace illicit financial transactions linked with cryptocurrencies and also they successfully detained illegal cash as well as involved bad actors.

Read also: Indian crypto traders using VPN to bypass Binance URL access restriction

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