Top stablecoin 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).
The UNODC says in a new report that criminals in the region prefer to use the Tether-issued stablecoin on the Tron () blockchain due to its stability, ease, anonymity and low transaction fees.
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.
