On Monday, January 15 the world’s largest stablecoin issuer Tether vehemently refuted claims of its involvement in illicit activities. Earlier this year the United Nations accused Tether of supporting unlawful activities.
The UN official alleged that Tether supported the use of crypto in illegal activities which impacted the violation of financial regulations.
Tether Respond to UN Allegations
In a subsequent report, the UN Office for Drugs and Crime (UNODC) formulated a report to examine the use of crypto in illicit activities.
The UNODC official noted that criminals from Southeast Asia and the Pacific region laundered funds through Tether. The report demonstrated that since USDT was listed on Tron network the stablecoin popularity has grown.
Based on the anonymous nature of Tron, criminals are taking advantage of this network to hide the source of illicit funds. The UNODC report demonstrated the TRON network’s adequate privacy features that conceal illicit transactions.
Besides the advantage of TRON, the UNODC executives noted that the stability of USDT enables criminals to navigate the volatile crypto market. This demonstrated that USDT on the TRON network enables criminals to execute fast transactions at a low cost.
Role of Tether in Supporting Developing Economies
From 2022 the notorious cyber criminals have been looming over the crypto sector to finance their unlawful activities. The rise of crypto crime obliged global regulators to take decisive action to crack down on the digital sector.
In retaliation to the UN accusation, the Tether team claimed that the assessment made by the agency failed to trace USDT. The stablecoin issuer argued that for months the Tether group has been working closely with the law enforcers to convict criminals.
This implies that Tether has been championing a transparent, secure and safe crypto sector. In the report the Tether team underlined the potential regulatory gaps in the crypto sector. Besides the regulatory gaps the Tether team observed with the ongoing development in the crypto sector the global regulators are required to amend the current regulations.
In the report, the Tether team advised the UN to deliberate on strategies to improve anti-financial crime through centralized stablecoins. The recommendation stemmed from the involvement of Tether to confiscate stolen assets tied to illicit groups.
Tether Collaborates with Law Enforcers to Mitigate Financial Crime
Last year the Tether team froze $300 million worth of USDT that was owned by a notorious group. Shortly after the incident, the Tether team collaborated with the US Department of Justice (DOJ) and OKX to trace the movement of stolen funds by Southeast Asian illicit groups.
After intense investigation, the three managed to seize $225 million that was stolen from innocent investors. At that time the criminal used pig butchering techniques to lure the investor to their dubious crypto schemes. Having collaborated with multiple regulatory agencies to restore customers’ confidence in the crypto sector Tether has portrayed its submissiveness to the law.
According to the report, the Tether team regretted that the UN assessment of the involvement of the stablecoin issuer in illicit activities failed to recognize the effort it made to support developing economies to penetrate in the emerging markets.
Significance of Blockchain Education in Addressing Financial Crimes
The Tether team noted that for years the renowned financial players failed to support the developing economies to attain their objectives. The stablecoin issuer added that most companies have neglected projects that support communities in developing economies since they are unprofitable.
Despite Tether’s contribution in addressing the challenges facing the developing economies the stablecoin issuer confirmed collaborating with international law enforcers to trace the movement of illicit funds linked to USDT. Through the collaboration with multiple law enforcers, the stablecoin issuer seeks to levy unparalleled monitoring of funds in the digital sector.
With its ongoing campaign to restore the integrity of the financial sector, the Tether team urged the UN to join the global community in sensitizing investors on practical ways to address financial crimes through advanced technologies such as crypto and blockchain.