Tether Ngambek Because Of The United Nations Calling USDT A Money Laundering Facility

JAKARTA - Tether, the publisher of USDT stablecoins, has denied accusations made by the United Nations Narcotics and Crime Office (UN) in a report released on January 15, 2024. The report claims that Tether is "the most popular advice for crypto-based money launderers in Southeast Asia."

For your information, stablecoin is a type of cryptocurrency whose value is stable because it is pegged on other assets, such as fiat or gold currencies. USDT is a stablecoin that is equivalent to the US dollar. This coin belonging to Tether is one of the largest stablecoins by market cap. USDT is developed on the Ethereum blockchain, using ERC-20 token standards.

Tether released an official response condemning the UN report "inaccurate, unfair, and incommensurate." The company stated that the report ignored USDT's positive role in "helping economic developments in emerging markets" and "increasing financial inclusion and accessibility for millions of people."

The response also highlighted the cooperation between Tether with various global law enforcement agencies, such as the United States Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), and the United States Secret Service (USSS), to combat illegal activities and use of cryptocurrencies by malicious actors.

Tether claims that the cooperation ensures strict monitoring and goes beyond the traditional banking system "for decades it has been a means of laundering large amounts of money proven through fines imposed on them."

In addition, Tether stressed that USDT stablecoins use public blockchains that allow tracking of each transaction, making them "unpractical options for illegal activity." In an interview, Tether CEO Paolo Ardoino said, "Physically speaking, Tether is the worst choice to carry out illegal activities."

Tether also provides a concrete example of how the company has helped DOJ in fighting illegal activities and the use of cryptocurrencies by criminals. In November 2023, Tether frozen more than 225 million USDT tokens linked to an illegal organization involved in human trafficking and fraud in Southeast Asia.

The organization uses USDT to transfer funds from victims to perpetrators, as well as to purchase other crypto assets. Tether is working with Chainalysis, a blockchain analytics firm, to monitor the secondary market and track the flow of these illegal funds. Tether has also frozen more than USD 300 million or approximately IDR 4.7 trillion (IDR 15,636.80 per USD) in recent months, demonstrating the company's commitment to countering cryptocurrency use for crime.

Tether also invited the United Nations to participate in collaborative dialogues that have proven successful with dozens of global law enforcement agencies. Tether believes that blockchain education plays a crucial role in fighting financial crimes and that the United Nations should focus on "how centralized stablecoins can increase its anti-financial crimes efforts" rather than simply focusing on the risks.

Tether closed their response by asserting that it would remain transparent, reported by CryptoBasic. Tether remains steadfast in promoting transparency and accountability in digital currency.