Tether, a prominent participant in the cryptocurrency sector, is becoming the go-to instrument for money launderers and fraudsters in Southeast Asia, according to a recent UN report published on Monday. The UN Office on Drugs and Crime produced a report that emphasizes the worrying growth in scams, especially the infamous “pig butchering” strategy that involves making false love connections.
While this is going on, criminal networks are taking advantage of Tether’s speed and irreversible transactions to establish a rival financial system as the landscape of digital currencies changes. Notably, the UN stresses the urgent need for cryptocurrency laws while warning of a supercharged criminal ecology.
Tether (USDT) Is Growing in Preference among scammers
Tether, the world’s top cryptocurrency platform, has found itself at the core of a boom in unlawful activity, particularly in Southeast Asia, according to a new assessment by the UN Office on Drugs and Crime.
This includes the unsettling practice of “pig butchering,” in which con artists create fictitious love relationships in order to take advantage of their victims’ emotions and money.
In the meantime, the UN research shows a worrisome rise in sophisticated, fast money laundering, with Tether being a prime example.
Law enforcement and financial intelligence agencies are becoming more concerned about this trend, according to a recent Financial Times piece that references a UN report. This indicates that stronger measures are becoming necessary to combat financial crimes in the digital sphere.
Notably, the long-standing tactic used by organized crime to launder illicit profits through black market casinos has been made easier by the rise of cryptocurrencies and technological advancements.
Tethers’ digital access makes it easier
Furthermore, the report emphasizes how commonplace online gambling sites are as attractive channels for money laundering using cryptocurrencies, particularly those that are illicit. As a stablecoin backed by the US dollar, Tether’s digital token makes it easier to conduct rapid, irreversible blockchain transactions.
On the other hand, because of its quickness and irrevocable transactions, criminal prosecutor Erin West claims that Tether is the favored method for illegal activity. He said that because Tether transactions cannot be reversed, it attracts criminals and makes it difficult for law enforcement to track and retrieve money that is not authorized.
Criminal Activity Increases Due To Regulatory Lag
The UN Offices’ Representative on Drugs and Crime’s Jeremy Douglas emphasizes how inadequate the laws governing cryptocurrencies are. According to him, they are either essentially nonexistent or far behind unlawful activity involving cryptocurrencies.
He added that organized crime presents a significant obstacle for law enforcement because it takes advantage of these legislative gaps and systemic vulnerabilities.
He claims that even with heightened international enforcement operations, criminal organizations continue to choose Tether as a means of money transfer—to the point that certain casinos have dedicated departments to handle Tether transactions.
Strong cryptocurrency laws are desperately needed, as the UN study makes clear as this platform continues to face regulatory scrutiny and difficulties with enforcement.
In the meanwhile, the dark connection between Tether and illicit activity in Southeast Asia highlights how financial crime is changing and calls for prompt and thorough regulatory actions to stop the spread of fraud powered by cryptocurrencies.