A protest campaign has been launched in the US against Tether, with an advertisement in Times Square accusing the company of corruption and aiding illegal activities. Consumers’ Research, a non-profit organization, spearheaded this action, comparing Tether to the bankrupt FTX exchange.
Executive Director Will Hild labeled Tether as a “Ponzi scheme” and criticized its lack of public auditing. He claimed that Tether’s USDT was the most used stablecoin for illicit activities in 2023. The UN has also reported increased usage of USDT for money laundering in Southeast Asia.
Tether responded by emphasizing its cooperation with law enforcement and the impracticality of using blockchain for illegal activities. Despite the controversy, Tether’s Q1 2024 report showed $4.52 billion in profits and a 90% cash backing. Tether continues to dominate the stablecoin market with a 69% share and a $162 billion market capitalization.
The ongoing debate on Tether’s practices highlights the need for more transparent regulation in the crypto-asset sector and underscores the long-term importance of financial transparency.
