- WSJ claims Tether is being used to fund North Korea’s nuclear program, finance Hamas
- Tether is centralized unlike other cryptos, it can freeze token
- Tether assures relevant due diligence and regulatory compliance
Tether (USDT) disputes a Wall Street Journal (WSJ) report that criminals are increasingly using the stablecoin to finance terrorist activity, evade sanctions, and launder money.
The USD peg makes it attractive for illegal activity
USDT has become popular for maintaining a 1:1 currency peg with the US dollar. This makes it a convenient trading tool. However, it has also become convenient for illegal financial activities, according to the report.
The WSJ claims Tether is being used to fund North Korea’s nuclear program, finance Hamas, enable Russian businessmen to trade sanctioned Venezuelan oil, and even pay Chinese fentanyl suppliers. Tether begs to differ, claiming the reports are based on erroneous data interpretations.
Almost all funds in Hamas-linked wallets are in USDT
According to the WSJ’s publication, which cites information from the Israeli government, wallets connected to Hamas have received more than $40 million in cryptocurrency in the last three years. Over 99% of it was in USDT.
US govt is investigating the stablecoin
In response, Sen. Cynthia Lummis and Rep. French Hill encouraged the Justice Department to speed up its investigation into the stablecoin, citing a pressing need to block financing of terrorist activity targeting Israel, according to the report.
Tether is centralized unlike other cryptos and its board can freeze the token if they wish, a fact that has also drawn attention.
Tether assures due diligence
In a blog post, Tether assured it carried out all relevant due diligence and regulatory compliance procedures, protected the integrity of its platform, and guaranteed blockchain’s inherent transparency. The company added:
The stablecoin is suffering from the shaky market. In August, its market capitalization dropped for the first time in nine months.
