- The United Nations (UN) recently released a report shedding light on the role of cryptoassets in criminal activities conducted by syndicates in Southeast Asia.
- According to the report, criminals are increasingly utilizing USDT (Tether) for the purpose of money laundering.
- Among the reasons cited by the agency for this trend is the relatively lenient regulation of the crypto industry in the region.
The Financial Times reported on the growing utilization of USDT by criminals in Southeast Asia to launder unlawfully acquired funds, referring to a UN Office on Drugs and Crime report.
A representative of the agency commented on the situation, stating:
“Organized crime has effectively established a parallel banking system through the utilization of new technologies. The proliferation of poorly or completely unregulated online casinos alongside crypto assets has bolstered the criminal ecosystem in the region.”
The report also highlights the active role of USDT in fraudulent schemes, including a tactic commonly known as “pig slaughter,” whereby victims are methodically exploited over an extended period of time.
The UN has expressed concerns about the relatively slow pace of global regulation in the crypto asset sector, valuing the development and popularization of the segment ahead of regulatory measures.
This concern is supported by the extent of publicity surrounding criminal activities. The report notes that a local crime syndicate openly advertises the exchange of USDT for cash.
Earlier, we featured a report by Binance on USDT’s circulation in the shadow sector of Southeast Asia in 2022, which surpassed $115 billion.
Additionally, Tether is actively collaborating with law enforcement agencies within anti-money laundering initiatives, including the Federal Bureau of Investigation (FBI) and the United States Secret Service.
In early December 2023, the company froze over 160 accounts involved in illegal activities.