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Tether and Cantor Fitzgerald Respond to UN's Claims of Illicit Financial Activity

17/01 01:46

According to Blockworks, stablecoin issuer Tether and its custodian Cantor Fitzgerald are refuting claims from the United Nations that Tether's USDT is one of the most popular vehicles for illicit financial activity. A recent UN report stated that USDT on the TRON155 blockchain has become a preferred choice for regional cyberfraud operations and money launderers. The report cited data from Bitrace, which showed transactions totaling over 17 billion USDT connected to underground currency exchanges, illegal commodity trades, and various criminal activities between September 2022 and September 2023. Tether expressed disappointment in a blog post, stating that the UN singled out USDT while ignoring its role in helping developing economies in emerging markets. Cantor Fitzgerald, the investment bank and brokerage that custodies Tether's assets, also defended the company. CEO Howard Lutnick confirmed that Tether has the reserves it claims to have. The UN report did not question the status or existence of USDT's reserves, but Tether has long faced speculation that it does not maintain them. In a recent attestation, Tether reported an excess of $3.2 billion in reserves at the end of the third quarter of 2023, cosigned by auditing firm BDO Italian. Tether encouraged the UN to expand its understanding of blockchain technology and its potential for fighting financial crime. The company also invited UN staff to engage in collaborative dialogue, similar to conversations Tether claims to have had with the US Department of Justice.

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