Tether, a major player in the Bitcoin and altcoin world, is becoming the go-to tool for money launderers and fraudsters in Southeast Asia, according to a recent UN report. The report, published by the UN Office on Drugs and Crime, highlights the alarming rise of scams, particularly the infamous “pig butchering” tactic involving fake romantic connections. Meanwhile, as the cryptocurrency landscape evolves, criminal networks are taking advantage of Tether’s speed and irreversible transactions, creating a parallel banking system. The UN, in particular, warns of an overloaded criminal ecosystem and emphasizes the urgent need for cryptocurrency regulations.
Tether, behind altcoin USDT, is popular with criminals
Tether, the world’s leading cryptocurrency platform, has found itself at the epicenter of a rise in illicit activity, particularly in Southeast Asia, according to a recent report by the UN Office on Drugs and Crime. This includes a disturbing trend known as pig butchering, a tactic where scammers fake romantic connections to exploit victims emotionally and financially. Meanwhile, the UN report highlights an alarming increase in sophisticated, high-speed money laundering, particularly involving Tether.
According to the Financial Times’ latest article citing the UN report, law enforcement and financial intelligence authorities are increasingly concerned about this trend, signaling a growing need for robust measures to combat financial crime in the digital space. In particular, the rise of cryptocurrency and technological advances have facilitated organized crime’s age-old practice of using black market casinos to launder illicit funds.
Tether makes “fast” and “irreversible” transactions easy
Additionally, the report highlights that online gambling platforms, especially illegal ones, stand out as popular tools for cryptocurrency-based money laundering. Tether’s altcoin, a stablecoin pegged to the US dollar, facilitates fast and irreversible transactions on the blockchain. Meanwhile, according to criminal prosecutor Erin West, Tether is the preferred mechanism for illegal activities due to its speed and irreversible transactions. He noted that the inability to withdraw transactions makes Tether an attractive tool for criminals and creates difficulties for law enforcement in tracking and recovering illicit funds.
Jeremy Douglas of the UN Office on Drugs and Crime underlines the inadequacy of cryptocurrency regulations. He noted that crypto-related illegal activities are significantly behind or almost non-existent. In addition, he noted that organized crime takes advantage of these regulatory loopholes by exploiting vulnerabilities and weaknesses in the system, posing a serious challenge to law enforcement. According to him, despite increased enforcement efforts globally, Tether remains a favorite for moving funds among criminal groups, including some casinos that specialize in handling Tether transactions.
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