UN Raises Red Flag on Tether in Southeast Asia
In Southeast Asia, Tether, a major cryptocurrency platform, has become a hotspot for illicit activities, according to a recent UN report.
The report reveals a surge in scams, notably the “pig butchering” tactic, where scammers exploit false romantic connections for financial gain.
Criminal networks are leveraging Tether’s fast and irreversible transactions, creating an alternative banking system. The UN warns of a growing criminal ecosystem, underscoring the need for urgent cryptocurrency regulations.
The UN’s Office on Drugs and Crime reports an increasing use of Tether, a global cryptocurrency platform, in illicit activities across Southeast Asia. The “pig butchering” tactic, manipulating fake romantic connections for financial gain, is on the rise.
Simultaneously, the report highlights a surge in high-speed money laundering involving Tether, prompting a call for robust measures to combat digital financial crimes. Advances in cryptocurrency and technology facilitate organized crime’s use of underground casinos for laundering funds.
The report also notes the significance of illegal online gambling platforms as favored channels for cryptocurrency-based money laundering. Tether’s stablecoin, pegged to the US dollar, enables quick and irreversible transactions.
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Criminal prosecutor Erin West emphasizes Tether’s appeal for illicit activities due to its speed and irreversibility. The inability to retract transactions poses challenges for law enforcement.
Jeremy Douglas from the UN’s Office on Drugs and Crime underscores the inadequacy of current cryptocurrency regulations. Organized crime exploits regulatory gaps, presenting a formidable challenge for law enforcement.
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.
