Tether Responds to UN Experts’ Allegations

Tether has expressed disappointment with the UN’s assessment of the use of the USDT stablecoin in illegal activities and the disregard for the asset’s role in emerging economies.

Tether Challenges UN Report and Calls for Blockchain Education

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— Tether (@Tether_to) January 15, 2024

Earlier, the UN Office on Drugs and Crime noted in a report that the “stablecoin” is increasingly used in romance scams and “pig butchering” schemes, as well as in the black market of online casinos in Southeast Asia.

“Organized crime has effectively created a parallel banking system using new technologies, and the spread of weakly or completely unregulated online casinos along with cryptocurrency has strengthened the criminal ecosystem in the region,” stated representatives of the international organization.

Tether pointed out that UN experts completely overlooked the company’s cooperation with authorities and law enforcement worldwide. According to the USDT issuer, it provides “unprecedented monitoring, surpassing traditional banking systems.”

“Tether tokens, using public blockchains, allow for meticulous tracking of every transaction, making them an impractical choice for illegal activity,” the company representatives emphasized.

They highlighted that in recent months alone, the firm has blocked over $300 million in USDT. This demonstrates Tether’s commitment to combating the illegal use of cryptocurrencies, the firm stressed.

“Instead of focusing solely on risks, the UN should also discuss how centralized stablecoins can support efforts to combat financial crimes,” the statement said.

Tether believes that the organization’s specialists need a deeper understanding of blockchain technology and expressed readiness to support the organization in this direction.

“We also invite the UN to engage in a joint dialogue, echoing successful cooperation with dozens of global law enforcement agencies, including the US Department of Justice and USSS. Tether continues to promote transparency and accountability in the digital currency sphere,” the company stated.

Tether specialists also noted the role of the stablecoin in supporting the financial systems of developing economies. According to them, for traditional structures, this simply appears economically unfeasible.

Back in December 2023, the company announced the start of a new policy to freeze wallets whose owners are under OFAC sanctions.