United Nations: USDT Tether has become the primary payment method for money laundering and fraud in Southeast Asia

The world's largest stablecoin issuer, Tether, was recently identified by the United Nations as a primary payment tool for money laundering and fraud activities in Southeast Asia. This discovery highlights the growing trend of cryptocurrencies in illicit financial activities and their potential impact on the global financial system.

Tether USDT and Money Laundering

According to a report released by the United Nations Office on Drugs and Crime on Monday, Tether USDT is at the core of several fraudulent activities, including "pig-killing scams." The so-called "pig-killing scam" is a fraud method where scammers gain the trust of victims through emotional manipulation and then induce them to transfer large sums of money.

The Alliance between Underground Casinos and Cryptocurrency

The report also points out that the development of cryptocurrencies, especially USDT, along with other rapid technological advancements, has facilitated the long-standing practice of Southeast Asian organized crime groups using underground casinos for money laundering.

Taiwan's first legislative candidate suspected of receiving Chinese funds in USDT, Ma Zhiwei, has been detained

China's Supreme Procuratorate and the State Administration of Foreign Exchange join forces to crack down on illegal cross-border financial activities, focusing on USDT money laundering

What is Tether USDT?

Tether USDT is a stablecoin backed by cash and cash equivalents pegged to the US dollar, unlike major cryptocurrencies like Bitcoin that are primarily used for speculation. Currently, there is approximately $95 billion USDT in circulation in the market.

USDT Transparency Report

Law Enforcement's Counterattack

The report mentions that in recent years, law enforcement agencies have dismantled several money laundering networks responsible for transferring illegal USDT funds, including the Singapore authorities confiscating $737 million in cash and cryptocurrencies last August.

Singapore's "Final Stablecoin Regulatory Framework" finalized, Monetary Authority issues four key conditions

Tether USDT's Deep Entanglement with Criminal Activities

Despite extensive enforcement actions against digital assets in the United States and other regions, criminal groups continue to use Tether USDT as an effective method for transferring funds, with some casinos even starting to specialize in handling Tether USDT.

Tether USDT: Increasing Regulatory Pressure

In recent years, Tether has come under close scrutiny by regulatory authorities for its asset management and connections with financial institutions. In 2021, the U.S. Commodity Futures Trading Commission (CFTC) accused Tether of making misleading statements about whether it had enough U.S. dollars to back its stablecoin. Tether paid a $41 million fine but did not admit any wrongdoing.

The Connection between Tether USDT and Illegal Activities

In November last year, the Financial Times revealed that Tether had deposited over $1 billion with a subsidiary of Britannia Financial Group. The founder of Britannia Financial Group, Julio Herrera Velutini, was indicted by U.S. authorities in August 2022 for alleged involvement in a bribery scheme. Velutini has denied these charges, and the company has not been accused of any wrongdoing, and the case is ongoing.

This report, released by the United Nations Office on Drugs and Crime, exposes the deep involvement of USDT in illicit financial activities while highlighting the challenges and shortcomings in cryptocurrency regulation.