Tether, issuer of the world’s largest stablecoin USDT, has challenged a United Nations (UN) report on USDT’s role in underground banking and money laundering infrastructure in East and Southeast Asia.
Tether said it was “disappointed” that the report singled out its stablecoin and ignored the company’s role in supporting developing economies in emerging markets and its track record of cooperating with law enforcement. I did,” he said.
A report by the United Nations Office on Drugs and Crime (UNODC) states: “Online gambling platforms in the region, especially those operating illegally, TRON) and Tether (USDT) on the blockchain have emerged as one of the most popular methods for those using them.
Tether called for a cooperative dialogue with the United Nations and appealed for “cooperation with law enforcement agencies around the world, including the U.S. Department of Justice, FBI, and Secret Service (USSS).” According to the company’s blog, USSS also recently joined Tether’s platform. The company has also emphasized its cooperative relationship with authorities, freezing more than $300 million (approximately 43.5 billion yen, equivalent to 145 yen to the dollar) in recent months.
A United Nations report found that in November 2023, Tether voluntarily froze $225 million worth of USDT related to human trafficking and pig slaughter based in Southeast Asia. However, it also notes that authorities in the region have reported that USDT is among the most popular crypto assets used by organized crime groups.
USDT rose to an all-time high in supply of approximately $90 billion (approximately 13 trillion yen) in December 2023, but S&P Global Ratings has determined that it is a rival in terms of its core role, the value of each dollar. It was criticized as being inferior. USDT is pegged to the U.S. dollar, but there is controversy over whether it can remain pegged to the U.S. dollar or whether its reserves are safe and actual dollars.
｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Original text: Tether Hits Back at UN Report Alleging Role of USDT in Illicit Activity in East Asia