From Casinos To 'Slaves': UN Report Details Tether's Role In Organized Crime

Zinger Key Points
  • Criminals use USDT in 'pig butchering' romance scams, exploiting victims' trust for financial gain.
  • UN regional representative Jeremy Douglas stated that organized crime has created a parallel system using crypto and online casinos.

Tether USDT/USD plays a critical role in facilitating a "parallel banking system" utilized by organized crime groups.

What Happened: According to the United Nations (UN), USDT has become a favored payment method for criminal activities, particularly in the illegal gambling sector in Southeast Asia.

The UN report points out that online gambling platforms, especially those operating illicitly, are increasingly becoming hotspots for cryptocurrency-based money laundering.

It specifically mentions the use of Tether on the Tron TRX/USD blockchain as a common tool in these activities. This trend is contributing to the growth of the illicit digital economy in Southeast Asia.

Furthermore, USDT is identified as a preferred currency in 'pig butchering' or romance scams.

In these scams, criminals build trust with victims, often suggesting a potential romantic relationship, before persuading them to transfer substantial sums of money.

Organized crime "has effectively created a parallel banking system using new technologies, and the proliferation of loosely or entirely unregulated online casinos together with crypto has supercharged the region’s criminal ecosystem," Jeremy Douglas, a regional representative of the UN, told The Financial Times.

Benzinga has reached out to Tether CEO Paolo Ardonio for a comment.

Read Also: Bitcoin ETFs Ignite A Tsunami, Threatening To Engulf Traditional Crypto Stocks

Why It Matters: A previous report in August last year detailed the trafficking of hundreds of thousands of individuals by organized crime syndicates for executing crypto scams and online fraud.

These scams predominantly use crypto, particularly USDT, due to its perceived untraceability.

Traffickers reportedly use USDT to sell slaves, while scammers encourage victims to use the stablecoin for deposits.

The UN's report concludes with a call to action for Southeast Asian governments to implement a human rights response.

It also urges banks and crypto exchanges to adopt a comprehensive approach, aligning with international human rights standards, to prevent traffickers from converting their illicitly obtained crypto into fiat currency.

Read Next: BlackRock CEO Larry Fink: 'I'm A Big Believer,' Sees Value In Having Ethereum ETFs

Image: Edited in Canva

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyNewsTop StoriesMarketsBlockchain Technologycrypto exchangecrypto regulationdigital currencyhuman traffickingmoney launderingSoutheast AsiaStories That MatterUnited Nations
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!