The United Nations has released a report highlighting concerns about Tether’s USDT, the largest stablecoin, being frequently used for money laundering and fraud in Southeast Asia. The report, covered by Financial Times, indicates that USDT is particularly popular among illegal online gambling platforms and those laundering money through cryptocurrencies.
The UN also pointed out the involvement of USDT in a scam known as “Pig Butchering,” and mentioned Tether’s cooperation with the US Department of Justice in freezing approximately 225 million USDT connected to an international human trafficking group involved in the scam in Southeast Asia in November 2023.
The report also sheds light on law enforcement’s success in disrupting numerous money laundering networks involving illicit Tether funds. For instance, in August of the previous year, Singaporean authorities conducted an operation that dismantled such a network, recovering around $735 million in cash and cryptocurrency.
Tether’s CEO, Paolo Ardoino, had communicated with US lawmakers in December 2023, revealing the inclusion of the US Secret Service and the Federal Bureau of Investigation for data tracking on their platform. This was a significant move, indicating Tether’s willingness to work transparently with legislators and law enforcement agencies.
Furthermore, data supported by The Block shows that Tether’s market share in the stablecoin sector rose from 50% to 71% throughout 2023, underlining its growing dominance in the market.