KEY POINTS
- Tether said the report ignored its role in helping developing economies
- "We remain always open for further collaboration, including with the UN": Tether CEO Paolo Ardoino
- USDT was trading up at $0.9997 in the early hours of Wednesday
Tether, the issuer of the world's most prominent stablecoin USDT, has raised concerns about the accuracy and implications of a UN report that claimed the token is being used by clandestine financial networks and money laundering infrastructure in East and Southeast Asia.
Tether, a prominent entity within the cryptocurrency sector, has encountered substantial scrutiny, despite its significant presence in the industry.
The latest round of criticism stems from a report issued by the UN Office on Drugs and Crime (UNODC) alleging USDT's involvement in unlawful financial activities.
Tether expressed disappointment regarding the report, which highlighted USDT's alleged involvement in unlawful activities while overlooking the vital contribution it makes in bolstering developing economies within emerging markets.
The stablecoin issuer said its surveillance and oversight measures surpass those typically employed by traditional banking systems. In recent years, these conventional systems faced allegations of being involved in money laundering cases, resulting in substantial financial penalties.
"The monitoring of Tether tokens through our collaboration with global law enforcement, including the DOJ, FBI, and USSS (which was recently onboarded on the Tether platform) ensures unparalleled monitoring, surpassing traditional banking systems that for decades have been the vessel for laundering substantial sums proven by the fines that have been levied on them," Tether said in a blog post. "Tether tokens, using public blockchains, make it possible to meticulously track every transaction, making it an impractical choice for illicit activities."
Commenting on the UN report, Tether CEO Paolo Ardoino said, "Education on Blockchain technologies is very much needed at all levels. As demonstrated by recent disclosures, Tether works with global law enforcement to combat illicit activities. And we remain always open for further collaboration, including with the UN."
Education on Blockchain technologies is very much needed at all levels.
— Paolo Ardoino 🍐 (@paoloardoino) January 15, 2024
As demonstrated by recent disclosures, Tether works with global law enforcement to combat illicit activities. And we remain always open for further collaboration, including with the UN. https://t.co/mM0nPPD6St
In its report, the UNODC noted: "Online gambling platforms, and especially those that are operating illegally, have emerged as among the most popular vehicles for cryptocurrency-based money launderers, particularly for those using Tether or USDT on the TRON blockchain, while also fueling the intensification of Southeast Asia's rapidly growing illicit digital economy, and particularly the regional cyberfraud industry."
"In recent years, law enforcement and financial intelligence authorities have reported the rapidly growing use of sophisticated, high-speed money laundering 'motorcade' teams specializing in underground Tether (USDT) cryptocurrency – fiat exchanges (卡接回U) across East and Southeast Asia. This has also included the mass recruitment of mule bank accounts across virtually all jurisdictions in the Asia Pacific region which can be purchased for as low as US $30 according to regional authorities," the report added.
As of 1:26 a.m. ET on Wednesday, USDT was trading up at $0.9997, with a 24-hour trading volume of $42,341,698,539. Tether's latest price action represents a 0.07% spike in its value for the day and a 0.06% loss over the past seven days.
Tether's current circulating supply stands at 95,121,720,211 USDT and its market cap is at $95,086,023,669, data from CoinMarketCap shows.
