News
Tether faces new allegations of terrorism and illicit financing
Stablecoin issuer, Tether has come under renewed criticism following allegations regarding the use of USDT in financing terrorism. The largest stablecoin by market capitalization has previously come under fire for its alleged use by the government to circumvent sanctions and other broader illicit uses, including money laundering. Tether continues to deny these allegations, pledging its support to the authorities.
Consumer Research Accuses Tether of Funding Terrorism
The nonprofit Consumers’ Research launched a campaign to expose Tether’s ties to terrorist organizations and human trafficking groups alongside the Chinese and Russian governments. According to
Will Hildexecutive director of the consumer advocacy company, Tether is used by Russia and other countries to avoid sanctions.
This comes months after the stablecoin issuer faced accusations on similar counts following the Hamas attacks on Israel on October 7. About 100 Binance accounts were frozen by the Israeli government while Tether froze assets worth $800,000.
“It was used by Russia to avoid monetary sanctions it was used by countries like Venezuela, then it seems to be used by human traffickers… Last year, Tether was linked to nearly 20 billion illicit transactions. Tether has also been used by Hamas, Al-Qaeda, ISIS and others, in millions of known terrorism-related financial transactions.
Adding that the company is linked to criminal activities, he suggested that it would become the next
FTX. Crypto assets remain linked to illegal financial activity as authorities attempt to curb criticism of their hard-to-trace capabilities.
The organization launches an announcement
A new billboard accusing Tether of corruption was featured in New York’s Times Square with the text “Tetheredtocorruption.” In addition to allegations that it is used to fund gangs and circumvent government sanctions, the organization denounced Tether’s refusal to undergo an audit to ensure it is backed 1:1. Drawing lines of alleged corruption, they called the company the next FTX.
Meanwhile, the crypto firm refuted claims that the assets are 100% collateralized, adding: “Notably, Tether has integrated the FBI and US Secret Service into its platform to strengthen efforts against criminal activities involving stablecoins.
Read also: Bitget Launches ZkSync ZK Token Staking, Price Recovery Coming
David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in emerging technologies and has an eye for the latest news. Staying on top of trends, David has worked across several niches including regulation, partnerships, crypto assets, stocks, NFTs, and more. Far from the financial markets, David goes cycling and horse riding.