Tether Responds to UN Criticism, Defending Transparent Practices 

Bits Logics Team . 16th Jan 2024
  • Tether defends against UN accusations, emphasizes traceability, and invites collaborative dialogue.
  • UN report questioned by Tether, cites commitment to anti-financial crime efforts and community protection.
  • Stablecoin issuer Tether challenges UN, showcases partnerships, and stresses proactive blockchain education.

In response to the recent United Nations (UN) assessment that singled out Tether (USDT) for its alleged involvement in illicit activities, the stablecoin issuer has issued a comprehensive statement vehemently defending its position and shedding light on its commitment to combating financial crimes.

The UN report had criticized Tether’s role, specifically focusing on potential risks associated with the stablecoin, while overlooking its positive impact on developing economies in emerging markets. Tether argues that its services often go unacknowledged by the global financial world due to the perceived lack of profitability in servicing such communities.

Tether emphasizes its collaboration with global law enforcement agencies, including the Department of Justice (DOJ), Federal Bureau of Investigation (FBI), and the United States Secret Service (USSS), the latter of which was recently onboarded onto the Tether platform. The stablecoin issuer asserts that this collaboration provides unparalleled monitoring capabilities, surpassing traditional banking systems and facilitating meticulous tracking of transactions through public blockchains.

The company highlights its proactive measures in freezing over US$300 million in recent months, showcasing its dedication to preventing the criminal use of cryptocurrencies. Tether points to its partnership with blockchain analytics firm Chainalysis to develop tools for monitoring secondary markets as a testament to its commitment to community protection.

Tether contends that the UN’s analysis overlooks the traceability of Tether tokens and the proven track record of collaboration with law enforcement. Instead of solely focusing on risks, Tether urges the UN to consider how centralized stablecoins can contribute to anti-financial crime efforts. The stablecoin issuer expresses its willingness to collaborate with the UN and the broader industry to understand and implement modern strategies to combat financial crimes effectively.

In its response, Tether extends an invitation to the UN for collaborative dialogue, citing successful partnerships with numerous global law enforcement agencies. The company reiterates its commitment to transparency and accountability in the realm of digital currencies.

Furthermore, Tether advocates for a proactive approach to learning and understanding blockchain technology, emphasizing the need for an expanded understanding of its fundamentals. The stablecoin issuer believes that a more informed environment is crucial for the successful integration of blockchain technology in the fight against financial crime.

As Tether continues to face scrutiny, the company remains steadfast in promoting transparency, accountability, and a collaborative approach to addressing the challenges associated with digital currencies.