Tether Faces Allegations of Terror Financing and Illicit Use of Stablecoin
The nonprofit firm Consumers' Research has launched a campaign in which it accuses Tether of using USDT to bypass sanctions involving terrorist organizations, human trafficking groups, and countries such as Russia and China.
The allegations against Tether could be the next FTX due to its alleged criminal activities according to the organization. A Times Square billboard accused Tether of corruption and criticized its refusal to undergo an audit to confirm its 1:1 asset backing.
Tether, however, maintains that its assets are fully backed and claims to have integrated with the FBI and U.S. Secret Service to enhance efforts against criminal activity involving stablecoins. Authorities have long been working to curb the use of cryptocurrencies in illegal finance activities because they are difficult-to-trace .
This is not true because he says Tether was used by Hamas, Al Qaeda, ISIS for terror-linked financial transactions worth millions last year totaling up to nearly $20 billion; Hild argues that this includes about $20 billion from over 1 million transactions related with terrorism in several regions in Asia.
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According to Will Hild, Executive Director of Consumers’ Research, Tether is being used by Russia, Venezuela, and others to evade monetary sanctions. The allegations against Tether could be the next FTX due to its alleged criminal activities according to the organization. A Times Square billboard accused Tether of corruption and criticized its refusal to undergo an audit to confirm its 1:1 asset backing.
The allegations against Tether have reignited concerns over the potential misuse of stablecoins and the need for greater transparency and oversight in the rapidly growing sector.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
