UN Highlights Tether's Role in Global Money Laundering

Tether's Involvement in Crime

The United Nations has flagged the cryptocurrency Tether (USDT) as a significant tool for money laundering, particularly in East and Southeast Asia. Its use now extends to international human trafficking rings and sophisticated laundering operations. Tether is linked to unauthorized online gambling, romance scams, and various fraudulent schemes.

Challenges in Regulation

Despite efforts by US authorities, including fund seizures and partnerships with federal agencies, Tether remains popular with organized crime. The irreversible nature of its transactions and the largely unregulated crypto environment facilitate fraudulent activities. These challenges hinder efforts to curb its misuse effectively.

Tether's Anti-Crime Measures

Tether has taken steps to address these concerns. In November, it assisted the U.S. Department of Justice by freezing $225 million in USDT linked to scams. The company has also communicated with US legislative bodies about its anti-crime strategies, employing tools like Chainalysis for transaction analysis and maintaining a compliance department focused on AML/KYC.

Global Law Enforcement Efforts

Cryptocurrencies' anonymity complicates tracking and prosecuting financial crimes. In Singapore, authorities successfully dismantled a laundering network tied to Tether, recovering significant assets. However, in regions like Myanmar and Cambodia, illegal crypto exchanges and casinos continue to thrive.

Tether's Market Position

Despite its links to illegal activities, Tether's influence in the cryptocurrency market is growing. Its market share increased from 50% to 71% over the past year. While less than 1% of crypto transactions are crime-related, Tether remains the most traded cryptocurrency, with a daily volume exceeding $29 billion. It holds a substantial market cap, indicating its crucial role in the digital currency landscape.