TruthLabs’ Startling Discoveries: Is Tether Associated with Money Laundering?
Recent investigations conducted by TruthLabs have uncovered troubling connections between Tether, one of the largest stablecoins in the cryptocurrency market, and illicit activities such as money laundering and links to terrorist organizations. These findings are in addition to the findings concerning Crypto Israel Aid and Cex.io, a preferred cryptocurrency exchange of Hamas.
When TruthLabs examined a report by the Department of Justice eight months ago, they discovered that certain major addresses associated with money laundering and terrorist financing were not included in the report. This raised concerns about the completeness and transparency of the report. TruthLabs emphasized that these omitted addresses were significantly more involved in illicit activities compared to the ones that were included and blacklisted.
In their research, TruthLabs discovered a concerning pattern between the funding addresses of Crypto Israel Aid and the addresses identified in the Department of Justice report. These addresses were not blacklisted, raising doubts about the impartiality of US regulatory agencies. TruthLabs questioned the independence of these agencies, suggesting that there may be an influence from Israel on the US government and its agencies.
On October 11, 2023, TruthLabs revealed that Cex.io, one of the favored crypto exchanges for Hamas, was linked to Capital Financial Plus (CFP) within the Silvergate Bank network. CFP was involved in widespread fraud related to PPP loans, granting loans to fictitious individuals while denying legitimate small business owners. TruthLabs highlighted that CFP was one of the largest banks involved in PPP loan fraud and had access to a risk-free government home loan program worth $125 million. These findings have broader implications considering the significant amount of money printed during the COVID-19 pandemic and the open borders.
The concerns raised by TruthLabs align with warnings from other authorities. Forbes reported in January 2024 on a warning from the United Nations Office on Drugs and Crime (UNODC) about Tether’s role as a preferred platform for money laundering and fraud, particularly in East and Southeast Asia. The UNODC emphasized the increasing number of cyber fraud, money laundering, and underground banking cases involving Tether. Specific schemes included “sextortion” and “pig butchering,” which exploit social engineering techniques to extort money from victims. Online gambling platforms have also been identified as significant channels for Tether-based money laundering, contributing to the rapid growth of the illicit digital economy in the region.
When considering the warnings from international bodies and the revelations from TruthLabs, it becomes evident that Tether’s involvement in illicit activities is a serious concern. The connections to terrorist groups, money laundering, and fraud highlight the need for greater scrutiny and transparency in the cryptocurrency market.