The UN has issued a warning about how Tether, a big cryptocurrency, is being used for money laundering and fraud. The report says that Tether is being used for scams and illegal activities, such as scamming people into transferring large sums of money. Organised crime groups in southeast Asia are using cryptocurrency and black market casinos to launder illegal money. Tether is a type of cryptocurrency called a stablecoin, which is pegged to the US dollar to stabilise its price. Law enforcement authorities have been taking down money laundering networks that use Tether, but criminals continue to use it due to its fast and irreversible transactions. Tether did not respond to the UN’s comments. US authorities have also fined Tether $41mn over misleading statements about their stablecoin. In November, the Financial Times revealed that Tether deposited over $1bn with an entity connected to a financier charged with bribery. The UN has expressed concern about the lack of regulation in cryptocurrency, which allows criminals to take advantage of the system. Despite the crackdown on digital assets, Tether is still being used to move funds for criminal activity.
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