Tether expressed disappointment after the UN flagged its stablecoin USDT as widely used in money laundering and illicit activities across Southeast Asia. 

The world's largest stablecoin, valued at $95 billion, denies the allegations and points out its extensive collaboration with global law enforcement agencies, including the Department of Justice, FBI, and USSS.

“We are disappointed in the UN’s assessment that singles out USDT highlighting its involvement in illicit activity while ignoring its role in helping developing economies in emerging markets, completely neglected by the global financial world simply because servicing such communities would be unprofitable for them,” Tether wrote in a recent blog.

The crypto company, a major issuer of stablecoins, highlights its unique ability to allow law enforcement to freeze illegal transactions—a capability absent in traditional asset systems. Moreover, Tether points to the transparency of its public registry, making it easier to trace fraudulent transactions involving cryptocurrencies. 

The company contends that the UN report lacks acknowledgment of the pivotal role played by blockchain technology in detecting and preventing illegal activities.

"The UN’s analysis ignores the traceability of Tether tokens and the proven record Tether has of collaborating with law enforcement. Rather than focusing solely on risks, the UN should also discuss how centralized stablecoins can improve anti-financial crime efforts," the stablecoin issuer asserts in response to the UN findings.

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A Look at Allegations: Tether's Rebuttal

The UN report, published on Monday, positions Tether's USDT as the primary vehicle for illegal transactions, particularly through unregistered online gambling platforms. Additionally, the report cites USDT's involvement in underground romantic scams dubbed "pig butchering." 

Last November, the US Department of Justice seized $9 million worth of USDT linked to a pig butchering scheme.

In response to these allegations, Tether reiterates its track record of collaboration with law enforcement and highlights the traceability of its transactions on the blockchain.

Tether earlier announced the freezing of $225 million in USDT connected to a human trafficking ring in the Southeast Asia region.

Paolo Ardoino, Tether's CEO, stresses the need for blockchain education at all levels and extends a welcome for further collaboration, including with the UN. 

Tether firmly believes that the focus should shift toward developing modern strategies to combat financial crime through blockchain technology. The stablecoin issuer invites the UN to engage in a joint dialogue to address challenges and promote collective efforts to combat financial crime in the digital age.