Recent events revealed that the giant stablecoin issuer, Tether (USDT), has vehemently denied the allegations laid against it by the United Nations concerning the use of USDT in several illicit and criminal activities, such as money laundering, especially in the pig butchering scams reportedly orchestrated by Southeast Asia hackers. In its defense, Tether highlights its total compliance with the global regulatory standards enforced by agencies like the USSS, FBI, and DOJ.
According to the report, the United Nations (UN) recently implicated the top-leading stablecoin issuer, Tether, for aiding and abetting criminals by allowing them to use its native stablecoin, USDT, to perpetrate their criminal activities. The UN added that many financial crimes, including money laundering and the Southeast scam rampage, were carried out using USDT mostly. However, Tether has strongly refuted the allegations in a rebuttal it published on January 16, 2024. The firm emphasized its proactive standpoint against illegal activities and advocated the use of blockchain innovation to combat related issues.
Tether Highlights Its Alliance With Prominent Law Enforcement Agencies
Stating in its response to the UN, Tether pointed out its currency compliance with prominent global law enforcers such as the Federal Bureau of Investigation, the Department of Justice, and the United States Secret Service. The USDT issuer used these cooperations as a testament to its dedication towards combating fraudulent financial activities and conscious effort to help authorities in mitigating these crimes.
Furthermore, the firm claimed that the core component of the blockchain innovation on which it operates enables it to track and thwart fraudulent activities, debunking the UN’s allegations. Moreover, Tether pointed out that its blockchain system prioritizes transparency, allowing for thorough supervision of transactions. With this feature, Tether argued that it has an edge over conventional financial systems in terms of detecting and solving illegal transactions.
Also, the company highlighted its ability to take spontaneous decisions such as freezing illegal transactions, showcasing its role in preventing the misuse of its stablecoin, USDT, by fraudsters.
UN Invited For A Collaborative Dialogue
In addition, Tether shed light on the general significance of the blockchain innovation in improving transparency and security. The firm frowned at the UN for leaving out the traceability feature of the Tether token in its report, highlighting previous records of cooperating with law enforcers to tackle financial crimes. Moreover, the firm pointed out that it has successfully frozen numerous suspicious transactions, totaling about $300 million in USDT in recent months, depicting its proactive efforts in mitigating the misuse of cryptocurrencies for criminal activities.
Furthermore, Tether urged the United Nations to review its perception and acknowledge the capacity of the blockchain innovation in connecting financial-related crimes. Also, it called for a more comprehensive and cooperative approach toward comprehending and using the potentials of blockchain and crypto innovations. Tether’s goal is to facilitate a collaborative effort to combat illegal financial activities in the digital assets sector by asking for a dialogue with the UN, highlighting the significance of contemporary techniques and clear cryptocurrency rules.
Tether’s Perspective On Preventing Financial Crimes
While addressing the UN’s accusations against it, Tether emphasized its commitment to maintaining its accountability and transparency reputation in the digital assets sector. The move by the firm to request a cooperative dialogue with the UN showcased its earnest wish to mitigate concerns and join hands in addressing fraudulent activities in the crypto industry.
Furthermore, Tether’s stance aligns with the trendy movement in the broader crypto community where individuals and firms are adapting and complying with regulatory directives in their jurisdictions as well as contributing to the enhancement of security in the sector. Also, Tether’s actions reflect a growing awareness and accountability across firms in the sector as they join forces in actively fighting financial crimes.
In addition, Tether’s move to deny UN’s accusations and point out its efforts in cooperating with agencies to combat misuse of digital currencies reflects its aim of reshaping the sentiment around the use of stablecoins in illegal activities. The firm maintained a simple belief that when blockchain innovation is used ideally, it can eradicate financial crimes, not promote it.
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