The report’s focus on Tether’s stablecoin, USDT, was a source of “disappointment” for the company.
The biggest stablecoin in the world, USDT, and its issuer, Tether, have disputed a UN report that implicates USDT in the underground banking and money laundering networks in Southeast and East Asia.
Tether expressed its disappointment that the research had focused only on its stablecoin, disregarding its contributions to new markets and role in assisting developing economies, as well as its history of cooperation with law enforcement.
According to a report by the UN Office on Drugs and Crime (UNODC), illegal online gambling platforms have become a favorite among cryptocurrency-based money launderers in the region, especially those using Tether or USDT on the TRON blockchain.
In a statement, Tether praised its “collaboration with global law enforcement, including the DOJ, FBI, and the United States Secret Service (USSS)” and urged the United Nations to participate in a cooperative discourse. The business blog also announced that USSS had just joined the Tether platform. More than $300 million has been frozen in the last several months as part of the firm’s collaboration with authorities.
According to the UN study, authorities in Southeast Asia have identified USDT as one of the most prominent cryptocurrencies utilized by organized criminal organizations. In November 2023, Tether voluntarily froze $225 million in USDT linked to this operation.
In December 2023, the supply of Tether’s USDT reached a record high of approximately $90 billion. However, S&P Global Ratings criticized the cryptocurrency for failing to meet its primary objective, which is to be valued at $1, compared to competitors. There has been debate about whether Tether’s reserves are secure and real dollars or whether it can maintain USDT’s peg to the dollar.
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