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Tether, a widely traded cryptocurrency, is identified by the United Nations as a primary tool for criminals, money launderers, and scammers.
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The UN Office on Drugs and Crime (UNODC) warns that Tether has become the preferred platform for money laundering and fraud operations in East and Southeast Asia.
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Tether, a company running a blockchain platform, issues digital tokens tied to real-world currencies, with USDT (tether) being the most notable, pegged one-for-one to the U.S. dollar.
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Tether's stability, ease of use, anonymity, and low transaction fees make it a favored choice for fraudsters and money launderers, ranking among the most popular cryptocurrencies for organized crime groups in the region.
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The UN highlights a surge in cyber fraud, money laundering, and underground banking cases, including schemes like "sextortion" and "pig butchering" associated with Tether.
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There is a rapid uptick in the use of sophisticated, high-speed money laundering teams specializing in Tether, advertised on platforms like Facebook, TikTok, and Telegram.
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Online gambling platforms, particularly those using Tether, have become prominent vehicles for cryptocurrency-based money laundering, contributing to the growth of the illicit digital economy in the region.
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The UNODC's Jeremy Douglas emphasizes that organized crime has established a parallel banking system using new technologies, exploiting the lack of crypto regulations, and warns about the supercharged criminal ecosystem in the region.
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Despite concerns about crypto enabling criminal activity, the UN report cites data indicating that "less than 1%" of all cryptocurrency payments are illicit.