A recent United Nations (UN) report reveals Tether (USDT) as a linchpin in an illicit "parallel banking system" orchestrated by organized crime, leveraging cutting-edge technologies.
USDT in Criminal Activities:
Online Gambling and Illicit Operations
USDT emerges as the preferred payment method for criminal enterprises, notably within Southeast Asia's gambling underworld. The UN Office on Drugs and Crime points out the connection between USDT usage on the TRON25 blockchain and the flourishing illicit digital economy, especially the cyberfraud industry in the region.
USDT in Scams:
‘Pig Butchering’ and Romance Scams
Criminals utilize USDT in deceptive schemes, including 'pig butchering' and romance scams. These scams involve gaining victims' trust, hinting at romantic involvement, and manipulating them into transferring substantial sums of money.
UN's Warning:
Prior Alerts on USDT
This isn't the first time the UN has raised concerns about USDT's expanding role in Southeast Asia's criminal landscape. A prior report from August highlights the involvement of organized criminal groups trafficking individuals for crypto scams and online fraud in the region.
Addressing the Issue:
Call for Action
UN representative Jeremy Douglas underscores the urgent need for a collective response to counter the parallel banking system facilitated by organized crime. The report urges Southeast Asian governments to adopt a human rights-oriented approach and encourages collaboration between banks and crypto exchanges to prevent traffickers from converting illicit crypto into fiat.
The UN's comprehensive report sheds light on the pervasive use of USDT in fueling criminal activities across Southeast Asia. Addressing this issue requires a concerted effort from governments, financial institutions, and crypto exchanges to safeguard against money laundering and protect the region's financial integrity.
The report objectively highlights the concerning integration of USDT into criminal activities. The negative consequences emphasize the need for swift and coordinated action to curb money laundering and protect the region from the detrimental impact of illicit financial practices.
Sanya
