From Casinos To 'Slaves': UN Report Details Tether's Role In Organized Crime
Portfolio Pulse from Murtuza Merchant
A UN report highlights Tether's (USDT) role in a 'parallel banking system' used by organized crime, particularly in illegal gambling and 'pig butchering' romance scams in Southeast Asia. The report emphasizes the use of USDT on the Tron blockchain (TRX) for money laundering and other illicit activities. It calls for action from governments and financial institutions to align with human rights standards to prevent the conversion of illegal crypto to fiat currency.
January 16, 2024 | 8:01 pm
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NEGATIVE IMPACT
Tron (TRX) is mentioned in the UN report for its blockchain being used to facilitate illegal transactions with USDT, which could affect its reputation and use case.
Although Tron (TRX) is not the focus of the report, its association with illicit activities through the use of its blockchain for USDT transactions may lead to negative perceptions among investors. This could potentially result in a short-term negative impact on TRX's price as the market reacts to the news.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
The UN report implicates Tether (USDT) in facilitating organized crime, which could lead to increased regulatory scrutiny and potential reputational damage.
The direct mention of Tether (USDT) as a tool for criminal activities could result in negative sentiment among investors and users, possibly leading to a decrease in trust and demand. This could also attract regulatory attention, which may impact its price negatively in the short term.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100