In its most recent report, the US Treasury Department has issued a caution about Russia’s usage of stablecoins like Tether for illicit activities to bypass sanctions and finance their military machinery.
Russia USDT Use Takes Limelight
In a formal statement to the Senate Banking Committee, the US Treasury Deputy Secretary expressed concern that Russia’s usage of USD Tether (USDT) has been increasing to bypass economic sanctions. The report underscores the importance of establishing an effective enforcement system to prevent such misconduct, as more unscrupulous governments, international criminal groups, and terrorists exploit digital assets for similar purposes.
USDT Top Choice for Illegal Activities
Russia USDT use is not the only example of the crypto’s involvement in illicit activities. Out of all the stablecoins, Tether has been the most popular choice for illegal activity in the previous year. This occurs against the backdrop of a decline in total illicit cryptocurrency use. Compared to $24.7 billion the year before, $19.3 billion worth of illicit transactions were linked to the USDT token in 2023.
UN Report Echoes Same Message
The UN investigation’s findings on Tether’s involvement in illicit activities align with a recent report in the US. According to the UN Office on Drugs and Crime, Tether, which is well-known in the cryptocurrency industry, has become a preferred tool for scammers and money launderers, particularly in Southeast Asia. The report highlights the concerning rise in scams, with a focus on schemes like “pig butchering,” where fraudsters create fake romantic connections to deceive victims.
As criminal networks seize opportunities presented by Tether’s fast and irrevocable transactions, they are building an alternative financial system during this transformation in the digital currency market. It is important to note that the UN has underscored the necessity of cryptocurrency regulations while expressing concerns over a thriving criminal ecosystem.
Tether’s $500 Mln Bitcoin Mining Investment
At the same point in time, Russia’s usage of USDT raises questions, as Tether CEO Paolo Ardoino announced that his company’s $500 million Bitcoin mining investment plan, initially proposed in November 2023, is nearing its conclusion. In a conversation with DL News during Paris Blockchain Week, Ardoino emphasized Tether’s intent to establish renewable energy infrastructure in Latin American countries such as Uruguay, Paraguay, and El Salvador.
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2024-04-09 22:06