Recently, Tether issued a response to a United Nations report that raised concerns about the use of the USDT stablecoin in illicit activities, including money laundering and organized crime in Southeast Asia. The company expressed disappointment with the UN’s assessment and emphasized the traceability of USDT on the blockchain. CEO Paolo Ardoino stated that Tether will continue to collaborate with law enforcement and other entities, including the UN.
Tether Challenges UN Report and Emphasizes Traceability of USDT
The UN report highlighted Tether as a prominent vehicle for illegal transactions, particularly in unregistered online gambling platforms. It also pointed out the stablecoin’s involvement in underground romantic scams known as “pig butchering.” In response, Tether reiterated its commitment to working with law enforcement and stressed the traceability of Tether transactions on the blockchain, making it impractical for illicit activities.
The company also called for broader discussions on how centralized stablecoins can enhance anti-financial crime efforts and emphasized the need for blockchain education at all levels. Tether welcomes further collaboration, including with the UN, to address these issues.
Source: Coin Journal
Summary
Tether has responded to a United Nations report that identified the USDT stablecoin as widely used in money laundering and organized crime in Southeast Asia. The company challenged the UN’s assessment and emphasized the traceability of USDT on the blockchain. Tether expressed its commitment to collaborating with law enforcement and called for broader discussions on the role of stablecoins in combating financial crime.
FAQs
What is the UN report about?
The UN report raised concerns about the use of Tether’s USDT stablecoin in illicit activities, including money laundering, organized crime, and unregistered online gambling in Southeast Asia.
How did Tether respond to the UN report?
Tether expressed disappointment with the UN’s assessment and emphasized the traceability of USDT transactions on the blockchain. The company reiterated its commitment to collaborating with law enforcement and other entities to address these concerns.
What is Tether’s stance on blockchain education?
Tether emphasized the need for blockchain education at all levels and welcomed further collaboration, including with the UN, to address the challenges associated with the use of stablecoins in illicit activities.