Tether Faces Renewed Terror and Illicit Finance Allegations
Highlights
- Tether faces renewed criticism on terror finance allegations.
- A new digital billboard drawing corruption lines against the firm appeared in New York.
- Tether denied the allegations stating its commitment to work with authorities.
Stablecoin issuer, Tether has faced renewed criticism following allegations concerning the use of USDT in terror financing. The largest stablecoin by market cap has previously come under fire for its alleged use in government bypassing sanctions and other wider illicit uses including money laundering. Tether continues to deny these allegations pledging support for authorities.
Consumers’ Research Accuses Tether Of Terror Finance
Nonprofit firm, Consumers’ Research launched a campaign to show Tether’s links to terrorist organizations, and human trafficking groups alongside the Chinese and Russian governments. According to Will Hild, the Executive Director of the consumer advocacy firm, Tether is used by Russia and other countries to avoid sanctions.
This comes months after the stablecoin issuer was accused on similar points following Hamas’ Oct 7 attacks on Israel. About 100 Binance accounts were frozen by the Israeli government while Tether froze $800,000 worth of assets.
“It’s been used by Russia to avoid monetary sanctions, it’s been used by countries like Venezuela, and then it seems to be being used by human traffickers… Last year Tether was linked to nearly 20 billion in illicit transactions. Tether has also been used by Hamas, Al Qaeda, ISIS, and others, with known terrorist-linked financial transactions in the millions.”
Adding that the company is linked to criminal activities, it hinted that the company becomes the next FTX. Crypto assets remain linked to illegal finance activities with authorities trying to curb criticizing its difficult-to-trace capabilities.
Organization Launches Ad
A new billboard accusing Tether of corruption was featured in Times Square, New York with the write-up, “Tetheredtocorruption.” Aside from allegations of its use to finance gangs and bypass government sanctions, the organization called out Tether’s refusal to undergo an audit to make sure it is backed 1:1. Drawing lines of alleged corruption, they termed the company as the next FTX.
Meanwhile, the crypto firm debunked the allegations stating that assets are backed 100% adding: “Notably, Tether has integrated the FBI and the U.S. Secret Service into its platform to enhance efforts against criminal activity involving stablecoins.”
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