UN Highlights the Popularity of USDT in Money Laundering Schemes
Date: 2024-01-15 Author: Dima Zakharov Categories: IN WORLD
Stablecoin USDT has emerged as a popular choice among criminals engaged in various illicit activities, according to a report by the United Nations Office on Drugs and Crime (UNODC). The report highlights the misuse of USDT in romantic scams, the "pig butchering" scheme, and the unregulated online casino market in Southeast Asia.
UN representatives emphasized that organized crime has effectively established a parallel banking system using new technologies, and the proliferation of loosely regulated online casinos, coupled with cryptocurrency, has intensified the criminal ecosystem in the region.
The report's authors attribute the criminal interest in USDT to its offering of "fast and irreversible" transactions. Additionally, the limited regulation of the cryptocurrency market plays into the hands of wrongdoers.
These factors enable criminal groups to use USDT as an efficient means of moving funds, to the extent that some casinos have specialized in handling this token. Notably, a syndicate operating in Myanmar and Cambodia even advertised street exchanges of "black" tokens for cash.
Tether, the issuer of USDT, has not commented on the situation.
Recall that in November 2023, Tether froze approximately 225 million USDT linked to an international criminal syndicate in Southeast Asia, marking it as the "largest in history."
Starting from December 1st, Tether began blocking wallets associated with the SDN list from OFAC, calling it a "landmark initiative to enhance security and compliance with regulatory requirements in the cryptocurrency ecosystem." The company also highlighted its cooperation with agencies such as the Department of Justice, Secret Service, and FBI, not only in combating illegal financial activities but also in asset recovery for victims.
