Consumers’ Research Launch Campaign Accusing Tether of Illicit Activities

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As a long-term crypto investor with a keen interest in stablecoins, I’ve been following the developments surrounding Tether (USDT) with growing concern. The latest accusations of corruption and alleged involvement in terrorist funding are not new, but this campaign seems more organized and widespread than previous ones.

A persistent effort is being made against Tether, the biggest stablecoin issuer, alleging the company of involvement in corrupt practices and potential criminal acts. According to reports from Fox Business journalist Eleanor Terrett, this campaign was brought to public attention through a digital billboard in Times Square, New York City.

A large digital billboard in Times Square, New York City, currently displays a notice alleging corruption against Tether, the world’s biggest stablecoin.

— Eleanor Terrett (@EleanorTerrett) June 18, 2024

Link Established Between Tether and Terrorist Groups

A campaign centered around Tether includes mobile advertisements on billboards, a television spot, and a specific website: TetheredToCorruption.com.

Tether, the stablecoin company, is under scrutiny once again for allegedly using USDT (USDT’s price data) to support terrorist financing and other illegal activities such as sanctions evasion and money laundering. Previously, similar accusations against Tether surfaced regarding its role in enabling various governments to bypass economic sanctions.

As a researcher investigating Consumers’ Research, a prominent conservative non-profit organization, I can share that they are spearheading a novel campaign targeting Tether, the stablecoin issuer. The organization has attempted to uncover links between Tether and illicit activities such as terrorist financing, drug trafficking, human trafficking, as well as associations with the Chinese and Russian governments.

As a researcher investigating potential connections between Tether and various organizations, I’ve come across some groups that have been reportedly linked to this entity. These include Hamas, Al Qaeda, ISIS, among others.

As a crypto investor, I’ve closely followed the accusations against Binance and Tether during the Hamas attacks in October 2021. These two major cryptocurrency entities were under scrutiny for allegedly providing financing to the terrorist organization. US Senator Cynthia Lummis (R-WY) took action, urging the US Department of Justice (DOJ) to take decisive steps against Binance and Tether. At that time, over 100 Binance accounts were frozen by the Israeli government, while Tether was compelled to freeze assets valued at approximately $800,000.

The Consumers’ Research Executive Director, Will Hild, firmly believes that Tether maintains strong ties with Russia and other countries frequently circumventing sanctions. To strengthen his argument, Hild referenced Tether’s persistent refusal to submit to external audits for over a decade.

Could Tether be the Next FTX?

As a researcher, I’d put it this way: I noted a striking resemblance between the current situation and the case of FTX, headquartered in the Bahamas, which encountered significant challenges in 2022. Both entities operate outside the U.S and have faced accusations of dubious financial dealings.

As a researcher, I’ve noticed an increasing trend among criminals favoring Tether (USDT) as their preferred stablecoin in recent months. The rationale behind this selection is not hard to grasp. Tether is a digital currency that maintains a fixed value in relation to the US dollar, with every unit of Tether representing one dollar. This stability makes it an attractive choice compared to other less predictable cryptocurrencies.

As a researcher studying the cryptocurrency market, I’ve come across some troubling news regarding Tether and their recent audit refusal. Some skeptics have drawn parallels between Tether and Ponzi schemes due to this development. However, Tether has consistently denied such accusations in the past. At present, there is no formal response from the company regarding these concerns. Additionally, they have yet to debunk the allegations levied against them.

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2024-06-19 14:03