According to a United Nations' report, USDT from Tether is becoming a significant instrument in various money laundering and scam operations within Southeast Asia.

The USDT stablecoin issued by Tether The report underscores how Tether’s USDT has become a preferred vehicle for illicit money-laundering schemes in the Southeast Asian region. new report As documented in the report, a marked surge has been noted in the use of advanced money laundering techniques and specialized groups exploiting Tether, prompting vigilance from law enforcement. UNODC ).

The rapid evolution of cryptocurrency, along with technological advancements, has empowered organized crime factions in the region to engage in money laundering via underground casinos.

UNODC's findings suggest that illicit online gambling venues, particularly those operating in violation of the law, have become prime targets for cryptocurrency-based money laundering, specifically using Tether. Southeast Asia Jeremy Douglas, the UNODC's regional representative for Southeast Asia and the Pacific, remarked on how organized crime has effectively created an alternative banking system leveraging modern technology. The surge of loosely regulated or completely unregulated online casinos, combined with the rise of cryptocurrencies, has exacerbated the area's crime landscape.

USDT's significant role in 'pig butchering' schemes has been recognized.

The UNODC claims that this widely-used stablecoin has been heavily involved in various forms of fraud, particularly scams known as 'pig butchering.'

In November, Tether disclosed that it had frozen around $225 million worth of USDT from self-maintained wallets tied to a global human trafficking operation involved in pig-butchering scams.

According to Erin West, a criminal attorney and cybersecurity specialist from California, 'pig butchers' are attracted to Tether because of its capacity for swift, irreversible transactions on the blockchain.

'Tether serves as the go-to method; it's quick, and once a transaction happens, it's final—there’s no reclaiming the funds,' Erin expressed. United States Department of Justice She emphasized that fraud victims often find themselves ensnared by emotional connections and the allure of quick riches, especially in the unfamiliar realm of cryptocurrencies, which were scarce before their advent.

Furthermore, the report highlights several successful efforts by law enforcement to dismantle money laundering networks linked to illicit Tether transactions. In August of the preceding year, authorities in Singapore executed an operation that resulted in the recovery of roughly $735 million in cash and cryptocurrency.

USDT is a cryptocurrency designed for stability by typically tying its value to a fiat currency.

Being pegged to the US dollar allows traders to seamlessly transition between the cryptocurrency markets, setting it apart from non-pegged options like Bitcoin, which primarily serve speculative purposes. With about $95 billion circulating, USDT remains the dominant stablecoin.

Role In Other Illicit Operations 

Tether’s Response to Regulatory Pressures

Tether’s digital token USDT is a stablecoin Tether has encountered significant regulatory challenges in recent years, particularly concerning its asset management and ties to various financial institutions.

In 2021, the US Commodity Futures Trading Commission charged Tether with providing misleading information regarding the adequacy of dollar reserves backing its stablecoin. Tether opted to pay a $41 million fine without conceding guilt. stablecoin of its kind.

In a similar vein, in November 2023, Tether announced its partnership with US authorities to combat the unauthorized use of its tokens. Following this, the number of wallets associated with Tether that were blacklisted surged by about 27%, as reported by CCData, a data analytics firm specializing in the crypto space. In December, Tether's CEO communicated to US lawmakers that the company had integrated the US Secret Service and FBI into its operational framework.

In 2023, Tether's share of the global stablecoin market rose dramatically from 50% to 71%.

The growing influence of Tether within Southeast Asia's illicit money laundering and scam landscape, as detailed by the UNODC, underscores the necessity for stringent regulatory measures to address the rampant misuse of this widely-used cryptocurrency in the region.

United Nations Office on Drugs and Crime Paolo Ardoino Please be aware that the content on this page is not intended as legal, tax, investment, financial, or any other type of advice. It’s crucial to only invest what you can afford to lose and seek independent financial counsel if you’re unsure. We recommend referring to the issuer or advertiser's terms and conditions and support pages for further information. MetaversePost is committed to delivering accurate and impartial reporting, but market conditions may change without prior notice. has enlisted Alisa, a passionate journalist at Cryptocurrencylistings, focuses her expertise on cryptocurrency, zero-knowledge proofs, investments, and the vast world of Web3. With a sharp eye for the latest trends and technologies, she provides thorough insights that keep readers engaged and informed in the fast-moving sphere of digital finance.

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