The United Nations Office on Drugs and Crime has warned of the growing use of the Tether token by money launderers and fraudsters, particularly in Southeast Asia. According to a recent report, the USDT token, also known as Tether, is at the heart of a booming industry of frauds, the most common of which are those involving fake romantic relationships to gain the trust of victims before tricking them into transferring large sums, a strategy commonly known as "pig butchering".
The evolution of crypto-currency, alongside other rapid technological developments, has also reinforced the long-standing practice of South East Asian organised crime gangs using underground casinos to launder illicit funds. "Online gaming platforms, especially those operating illegally, have become among the most popular vehicles for cryptocurrency-based money launderers, particularly for those using Tether," the report states.
Jeremy Douglas of the United Nations Office on Drugs and Crime said, "Organised crime has created a shadow banking system using new technologies, and the proliferation of unregulated or poorly regulated online casinos, along with cryptocurrency, have supercharged the region's criminal ecosystem." The UN report notes that in recent years, authorities have dismantled several money laundering networks responsible for the movement of illicit Tether funds.
Fraudsters never really needed cryptocurrencies to carry out their shady activities. Long before the advent of Tether and other tokens, they had already mastered the art of deception with traditional currencies. In the end, cryptocurrencies are just another tool in their already well-stocked toolbox.
It is amusing to note the number of frauds carried out using the good old American dollar via systems such as Western Union. But of course, it seems that these schemes often fly under the radar of the general public and the media, overshadowed by the sensationalism surrounding cryptocurrencies.
When we compare the proportion of USDT used for fraudulent activities compared with that of the dollar or euro via systems such as Western Union, the perspective changes. It makes you wonder why the dominant narrative focuses so intensely on cryptocurrency. Is it really about volume, or is there a desire to tarnish the image of cryptocurrencies?
The number one money laundering system remains USD cash, known for its untraceability and complex physical management. Ironically, no money launderer would have a future publishing its movements on a public accounting ledger like Tether's. This cynicism around cryptocurrencies, while rooted in legitimate concerns, sometimes seems like an overreaction, or even a simplistic way of demonising an emerging technology.
As fraudsters continue to exploit every available currency, the stigmatisation of cryptocurrencies raises questions about the true motivations behind such rhetoric.
Source : https://www.ft.com/content/78c6ea20-5e9d-40ba-867f-1e0431ebb710
