Tether challenges UN claims of USDT use in illegal activities, advocates for blockchain education News โธ Tether โธ Stablecoins
Tether challenges UN claims of USDT use in illegal activities, advocates for blockchain education
Tether dismisses UN allegations, champions transparency and cooperation to deter crime.
2 min read
Updated: Jan. 16, 2024 at 3:05 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Stablecoin issuer Tether criticized the United Nations report, claiming that its USDT tokens are being used for illegal activities.
In a Jan. 16 blog post, Tether said the monitoring its stablecoins attract from regulatory authority surpasses those of the traditional banking systems.
The firm furthered that its assets were extensively monitored by global regulatory agencies, including the U.S. Department of Justice (DOJ), the Federal Bureau of Investigations (FBI), and the United States Secret Service (USSS).
“Tether tokens, using public blockchains, make it possible to meticulously trackย every transaction, making it an impractical choice for illicit activities,” Tether added.
A recent UN report highlights a rising preference among money launderers and scammers for Tether’s USDT stablecoin in illicit transactions. The report revealed the widespread use of this digital asset in various forms of underground fraud, with a particular focus on its involvement in romantic scams prevalent in Southeast Asia.
Advocates for blockchain education
The stablecoin issuer advised the UNย to have “an expanded understanding of blockchain technology and the immense improvements it offers with respect to fighting financial crime.”
According to the firm, this knowledge would help the agency understand how centralized stablecoins can help improve anti-financial crime efforts.
“There are yet many more opportunities to work to stop financial crimes on blockchains and it behooves the UN to work with the industry to understand and execute modern strategies to fight financial crime,” Tether added.
Tether CEO Paolo Ardoino disclosed that the firm was willing to collaborate with the UN to combat illicit activities, adding that:
“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.”
Tether is the largest stablecoin by market capitalization and controls more than 70% of the market. It has a circulating supply exceeding 95 billion tokens as of press time, according to CryptoSlate’s data.
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Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Tether Limited
Tether Limited is the company that introduced Tether (USDโฎ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.