[NEWS] UN points out that USDT is the most commonly used cryptocurrency for criminal activities in Southeast Asia; Tether refutes

On the 15th, the United Nations Office on Drugs and Crime (UNODC) revealed in a report that Tether (USDT), the largest stablecoin by market capitalization, is the most used for fraud and money laundering in Southeast Asia.

The report pointed out that the situation in which cryptocurrencies are misused is changing dramatically, and analyzed that Tether in particular is the most used by financial criminals. There seems to be a strong tendency to use Tether for reasons such as stability, convenience, anonymity, and fees.

The UN cited a sharp increase in cyber fraud and money laundering as the reason for Tether's widespread use. It also pointed out a sharp increase in "sextortion," which threatens to post sexual content or personal information, and "pig slaughter scams," named after the scam method, which resembles "pig slaughter."

According to the UN, there has been a rapid increase in sophisticated money laundering organizations specializing in the use of Tether in recent years. Criminals appear to be promoting their services on social media platforms such as Facebook, TikTok, and Telegram.

The report also provides a detailed analysis of how Tether is used. Its use in the online casino industry is particularly prominent. He pointed out that it is most commonly used by online casinos and money launderers who use crypto assets, especially those who use Tether.

Jeremy Douglas of the United Nations warned the Financial Times that "organized crime has effectively used new technology to create a parallel banking system. The spread of loosely regulated online casinos and crypto assets is accelerating the crime ecosystem in Southeast Asia."

Tether responds to UN report

In response to the report, Tether expressed its objections on its website on the same day, stating that it was "disappointed by the UN's assessment that ignores Tether's role." It also criticized the UN's analysis for ignoring Tether's traceability and the company's track record of working with law enforcement agencies.

Tether added that the UN should "not only focus on the risks, but also discuss how centralized stablecoins can improve efforts to combat financial crime."

Reference:Report,Tether Released
Image: Shutterstock

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