Leading stablecoin Tether faces a storm of accusations after TruthLabs, a blockchain analysis firm, unearthed troubling links to money laundering and terrorist financing. These revelations add to a growing chorus of concern surrounding Tether’s transparency and potential misuse.
TruthLabs’ investigation builds upon a Department of Justice (DOJ) report that identified Tether addresses connected to illicit activities. However, TruthLabs argues the report omitted key addresses tied to “massive rug pulls” and terrorist groups. This raises questions about the report’s comprehensiveness and transparency. As TruthLabs puts it, “the blockchain is the Truth,” and the excluded addresses represent far greater perpetrators than those included.
The investigation delves further, uncovering connections between Crypto Israel Aid’s funding and blacklisted Tether addresses identified in the DOJ report. This fuels skepticism about the impartiality of US regulatory agencies.
TruthLabs’ findings extend beyond Tether, revealing a disturbing link between Hamas and cryptocurrency exchange Cex.io. Notably, Cex.io is part of the Silvergate Bank network, previously implicated in a major PPP loan fraud scheme.
Also Read: Tether’s $1 Billion Injection Fuels Bitcoin Rally Speculation: Fresh USDT or Market Manipulation?
These revelations echo warnings from respected sources like Forbes and the UN Office on Drugs and Crime (UNODC). Forbes, citing the UNODC, reported on Tether’s potential as a tool for money laundering and fraud in East and Southeast Asia. The report highlights Tether’s stability, ease of use, and anonymity as factors attracting criminals.
The UNODC further emphasizes the “surging volume” of cybercrime involving Tether, encompassing sextortion, “pig butchering” scams, and online gambling platforms. These findings point to a potential link between Tether and the flourishing illicit digital economy.
With TruthLabs’ investigation igniting fresh concerns, Tether‘s reputation faces a critical test. The coming days will be crucial in determining the depth of these allegations and Tether’s response.
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