Reported by HELEN PARTZ

Major stablecoin firm Tether has responded to a United Nations (UN) report highlighting the alleged involvement of its Tether USDT $1.00 stablecoin in illicit activity.

On Jan. 15, the Southeast Asia and the Pacific division of the UN Office for Drugs and Crime (UNODC) issued a report on the use of cryptocurrencies in illegal activities and underground banking.

Titled “Casinos, Money Laundering, Underground Banking, and Transnational Organized Crime in East and Southeast Asia: A Hidden, Accelerating Threat,” the report referred to the USDT stablecoin as one of the primary vehicles for money laundering in the region. The report specifically referred to the rising popularity of USDT based on the Tron blockchain.

Challenging the UN’s study on Jan. 15, Tether emphasized that the agency’s analysis has “ignored the traceability” of USDT and disregarded its proven record of collaborating with law enforcement worldwide. “The UN should also discuss how centralized stablecoins can improve anti-financial crime efforts,” Tether said, adding that the firm is committed to collaboration on such matters.

Tether mentioned that it froze more than $300 million in USDT involved in illicit activities over the past few months, including $225 million frozen in November 2023 as part of a United States investigation into a Southeast Asian human trafficking syndicate.

Read full report: https://cointelegraph.com/news/tether-challenges-report-illicit-activity-usdt