Tether Challenges UN on Claims of Involvement in Illicit Activities

By: Eva Baxter

The largest stablecoin issuer, Tether, has disputed claims made by the United Nations (UN) stating its tokens are being used for illegal activities. This comes in response to a UN report suggesting Tether's USDT tokens are involved in illegitimate transactions, particularly in East and Southeast Asia.

In a blog post, Tether argued the level of regulation and monitoring its tokens attract, surpasses those of traditional banking systems. The company further assured its assets are notably tracked 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).

A UN report had recently emphasized an increasing inclination among money launderers and scammers towards Tether's USDT stablecoin. The report also revealed this digital asset's involvement in myriad forms of fraudulent activities, notably in romantic scams prolific in Southeast Asia.

Simultaneously, Tether also championed for improved Blockchain education, encouraging the UN for a wider understanding of blockchain technology. An insight, according to Tether, would aid in the fight against financial crime.