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Tether Responds To UN Report
In response to UN allegations, Tether suggests a proactive blockchain learning approach.
Tether and its custodian, Cantor Fitzgerald, have countered a recent United Nations report that named Tether’s USDT stablecoin as a key tool in illicit financial activities.
UN Report: USDT In Illicit Financing
The UN report, citing data from Bitrace, indicated that between September 2022 and September 2023, transactions involving more than 17 billion USDT were linked to illegal activities. These included underground currency exchanges, unlawful commodity trades, and various criminal activities. The report followed earlier findings highlighting Tether's involvement in financial crimes in South-East Asia, including online gambling and money laundering.
Tether's Defense: Focus On Benefits And Reserves
In response, Tether expressed disappointment in being "singled out" by the UN, suggesting that the report overlooked USDT's benefits in emerging markets. Cantor Fitzgerald's CEO Howard Lutnick affirmed Tether’s financial solidity, stating, "they have the money," during an interview at the Davos conference. Tether has faced scrutiny over its reserve claims, but in a recent attestation by BDO Italian, it reported an excess of $3.2 billion in reserves at the end of Q3 2023.
Tether's Call For Blockchain Education
Tether proposed that the UN could benefit from a broader understanding of blockchain technology, emphasizing its potential in combating financial crime. The company suggested a "proactive learning approach" and offered to assist the UN in gaining more insight into blockchain. Tether has engaged in similar dialogues with the US Department of Justice, advocating for collaborative efforts to address the challenges posed by new financial technologies.
Conclusion: A Complex Financial Landscape
The debate around Tether’s USDT underscores the complexity of regulating and managing cryptocurrencies. While Tether facilitates legitimate crypto trades with its stablecoin, the attributes that make it efficient also render it susceptible to illicit use. This situation presents a dual challenge for Tether and regulatory bodies, balancing the benefits of digital currencies against the risks they pose to the global financial system.
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