Top stablecoin USDT is the method of choice for money launderers and fraudsters in East and Southeast Asia, according to the United Nations Office on Drugs and Crime (UNODC).
Fraudsters and money launderers tend to funnel the USDT, which aims to maintain a 1:1 peg with the US dollar, through online gambling platforms that are often operating illegally.
“In recent years, law enforcement and financial intelligence authorities have reported the growing use of sophisticated, high-speed money laundering ‘motorcade’ teams specializing in underground USDT – fiat currency exchanges across East and Southeast Asia. This has also included the mass recruitment of mule bank accounts across virtually all jurisdictions in the Asia Pacific region which can be purchased for as little as $30.”
The report cites Tether’s move in November to freeze $225 million worth of USDT in certain Southeast Asian wallets after an investigation led by the U.S. Department of Justice (DOJ) alleged the addresses were connected to “pig-butchering” romance scams.
In a pig butchering scam, bad actors form a relationship with a victim online to gain their trust and convince the victim to invest in cryptocurrency platforms that the scammers control. Once the victim has invested a significant amount of money, the con artist disappears with the funds.
The fraudsters refer to their victims as “pigs” because they use elaborate storylines to “fatten up” the victim into believing they are in a close relationship.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney