The USDT stablecoin has become one of the popular tools among scammers and money launderers. This was reported by the Financial Times with reference to a report by the UN Office on Drugs and Crime.
According to the organization, the asset is increasingly being used in romance scams and pig butchering schemes, as well as in the online casino black market in Southeast Asia.
“Organized crime has effectively created a parallel banking system using new technologies, and the proliferation of poorly or completely unregulated online casinos along with cryptocurrency has strengthened the region’s criminal ecosystem,” the UN said.
The report’s authors explain the interest in the stablecoin by the fact that it offers “fast and irreversible” transactions. Weak regulation of the cryptocurrency market also plays into the hands of attackers.
All this allows criminal groups to use USDT as an effective method of moving funds, to the point that some casinos have begun to specialize in handling the token. In particular, one of the syndicates operating in Myanmar and Cambodia placed street advertisements offering the exchange of “black” tokens for cash.
Tether did not comment on the situation.
Let us recall that in November 2023, the issuer blocked about 225 million USDT associated with an international crime syndicate in Southeast Asia. The volume of frozen funds in the stablecoin was called “the largest in history.”
On December 1, Tether began blocking wallets associated with the OFAC SDN list. The firm called it “a landmark initiative to enhance security and compliance in the cryptocurrency ecosystem.”
The company also pointed to its assistance to agencies such as the DOJ, USSS and FBI. In a number of cases, it was not only about combating illegal financial activities, but also about restoring the assets of victims.
According to the organization, the asset is increasingly being used in romance scams and pig butchering schemes, as well as in the online casino black market in Southeast Asia.
“Organized crime has effectively created a parallel banking system using new technologies, and the proliferation of poorly or completely unregulated online casinos along with cryptocurrency has strengthened the region’s criminal ecosystem,” the UN said.
The report’s authors explain the interest in the stablecoin by the fact that it offers “fast and irreversible” transactions. Weak regulation of the cryptocurrency market also plays into the hands of attackers.
All this allows criminal groups to use USDT as an effective method of moving funds, to the point that some casinos have begun to specialize in handling the token. In particular, one of the syndicates operating in Myanmar and Cambodia placed street advertisements offering the exchange of “black” tokens for cash.
Tether did not comment on the situation.
Let us recall that in November 2023, the issuer blocked about 225 million USDT associated with an international crime syndicate in Southeast Asia. The volume of frozen funds in the stablecoin was called “the largest in history.”
On December 1, Tether began blocking wallets associated with the OFAC SDN list. The firm called it “a landmark initiative to enhance security and compliance in the cryptocurrency ecosystem.”
The company also pointed to its assistance to agencies such as the DOJ, USSS and FBI. In a number of cases, it was not only about combating illegal financial activities, but also about restoring the assets of victims.
