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UN Report Tether- The United Nations Office on Drugs and Crime has identified Tether, one of the world’s largest stablecoins, as a prominent tool in the hands of money launderers and fraudsters operating in Southeast Asia. The report, released on Monday, underscores the growing use of Tether’s stablecoin, USDT, for illicit activities, sparking concerns among law enforcement and financial intelligence authorities.
The document outlines a concerning surge in scams involving Tether, including manipulative schemes that exploit false romantic connections to gain victims’ trust, a tactic commonly referred to as “pig butchering,” as reported by Financial Times.
UN Report Tether Emergence as the Preferred Choice for Money Launderers
The report highlights authorities’ observation of a rapid expansion in sophisticated, high-speed money laundering teams specializing in utilizing Tether for underground transactions. The evolving landscape of cryptocurrency, combined with other technological advancements, has fueled organized crime gangs in Southeast Asia to exploit black market casinos as a means of laundering illicit funds.
The report underscores the prevalence of online gambling platforms, especially those operating illicitly, as increasingly favored channels for cryptocurrency-based money launderers, with Tether (USDT) emerging as a preferred choice.UN Report Tether- Jeremy Douglas from the UN’s Office on Drugs and Crime remarked on the situation, noting that organized crime has essentially established a parallel banking system through new technologies. The proliferation of loosely or entirely unregulated online casinos, combined with the use of crypto, has significantly intensified the criminal ecosystem in the region.
UN Report Tether- Authorities’ Efforts Against Tether-Linked Money Laundering Networks
The #UnitedNations #UN is just discovering what @Bitfinexed, @protos and other crypto skeptic voices have known for years.#Tether $USDT powers multiple vast criminal networks around the world. https://t.co/CpqL0n5NXV
— Parrot Capital 🦜 (@ParrotCapital) January 15, 2024
The report underscores Tether’s unique role as a stablecoin, pegged to the US dollar, allowing traders to maneuver in and out of crypto trades, setting it apart from other cryptocurrencies like Bitcoin primarily used for speculation. It sheds light on recent endeavors by authorities to dismantle money laundering networks associated with Tether, citing a successful operation by Singaporean authorities that recovered $737 million in cash and crypto in August of the previous year.
UN Report Tether- Despite increased regulatory scrutiny and enforcement actions in various jurisdictions, criminal groups persist in adopting Tether as a preferred method for moving funds. The cryptocurrency’s involvement in illicit financial activities is further emphasized by the specialization of some casinos in handling stablecoin transactions.
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