In the wake of a scathing UN report accusing Tether of facilitating illegal activities in Southeast Asia, the crypto firm has voiced disappointment over what it perceives as the unfair targeting of its USDT stablecoin. It argues that its contribution to developing economies in emerging markets has been overlooked and undervalued by the global financial community.
According to Tether, its commitment to serving communities, often ignored by traditional financial institutions, has made it a target of scrutiny. The crypto firm contends that providing financial services to such communities is deemed unprofitable by major players in the financial world.
Tether challenges the UN’s analysis, emphasizing the traceability of USDT tokens and its proven collaboration with law enforcement. The company asserts that it has frozen over $300 million in the past few months, showcasing its dedication to combating the illicit use of cryptocurrencies. Tether has implemented security measures, including working with Chainalysis to develop a tool for monitoring secondary markets, demonstrating its commitment to community protection.
The company claims to have collaborated with global law enforcement agencies, including the Department of Justice [DOJ], the Federal Bureau of Investigation [FBI], and the United States Secret Service [USSS], to ensure the meticulous monitoring of USDT and track every transaction. The stablecoin issuer argues that its efforts surpass traditional banking systems, which have long been conduits for money laundering, as evidenced by the substantial fines imposed on them over the years.
Tether’s Open Invitation
A day before the UN’s Office on Drugs and Crime delivered its critical remarks, accusing Tether of empowering money launderers and fraudsters, the cryptocurrency firm responded by criticizing the UN for lacking a basic understanding of blockchain technology. The crypto firm called for a more proactive learning approach and offered its support to help the UN gain a deeper understanding of the evolving landscape of digital currencies.
There are yet many more opportunities to work to stop financial crimes on blockchains, and it behooves the UN to work with the industry to understand and execute modern strategies to fight financial crime. We will happily collaborate on such matters.
Tether extended an invitation to the UN to engage in collaborative dialogue, citing successful partnerships with numerous global law enforcement agencies. The company remains unwavering in its commitment to promoting transparency and accountability in the realm of digital currencies.