Tether under fire for its links to governments, terrorists and trafficking

One of the most popular cryptocurrencies, Tether, has once again faced allegations of involvement in illegal activities. According to a Daily Mail report, Tether, the popular “US dollar-backed” cryptocurrency, is being criticized for its links to human traffickers and terrorists.

According to the conservative charity Consumers' Research, the cryptocurrency company, which offers one token for every dollar, presents itself as a “stable coin” whose value does not change and is therefore favored by dishonest people looking for traceless payments.

Tether allegation is not new

Allegations of Tether's involvement in illegal activities are not new. Previously, a Bloomberg report highlighted that Tether was the most popular stablecoin for illegal cryptocurrency activities last year.

It was also around this time that the total amount of illegal transactions in the space declined, as more companies dealing in digital assets came under scrutiny. In 2023, the USDT token was associated with $19.3 billion in illegal transactions, up from $24.7 billion the previous year, according to a report and email responses from TRM Labs, an analytics firm. blockchain.

The stablecoin has a rather tarnished image when it comes to being used by those who want to go beyond legalities.

Tether's ties to Hamas and Russia

The Daily Mail report highlights that the consumer advocacy group is running a multimillion-dollar advertising campaign to expose Tether's alleged ties to terrorist organizations, human trafficking rings, the Chinese and Russian governments and the Hamas.

In an exclusive interview with DailyMail.com, Will Hild, executive director of research at FTX Consumers, called Tether a “Ponzi scheme” that could be the next big cryptocurrency scam. He added: “Russia used it to evade financial sanctions; countries like Venezuela have used it, and it appears human traffickers are using it as well. Brock Pierce, a 43-year-old former Disney child star, co-founded Tether, which debuted in 2014. However, he is no longer connected to the coin.

But one has to wonder how Tether can help fight cybercrime and money laundering. Its connection with many exchange platforms, known for their flexible rules, could be one of the reasons. These exchanges have been criticized for allegedly allowing users to make illicit transactions without sufficient identity verification or adherence to AML regulations.

Additionally, Tether's lack of transparency makes it difficult for law enforcement and regulatory agencies to monitor its use and spot any questionable activity. Additionally, this lack of transparency makes it easier for criminals to use Tether to carry out illicit activities without raising red flags.