Criminals are using Tether (USDT) more than previously thought, according to a new report by Elliptic. Over the past three years, illicit wallets have received over $11 billion in USDT, mainly through a platform called Huione Guarantee.
Huione Guarantee facilitates transactions for cybercriminals, including money laundering from scams like pig butchering and sextortion. Pig butchering scams involve fraudsters gaining victims’ trust and convincing them to invest their life savings in fake crypto schemes.
The report highlights the plight of forced workers in Southeast Asia who are coerced into these scams. Disturbingly, tools for torturing these workers are sold on Huione Guarantee.
Despite the grim details, the transparency of blockchain can help monitor and freeze illicit USDT flows. The report also notes that Tether is increasingly used in China for illegal activities and has become a preferred choice for cyberfraud due to its stability and low transaction fees.
Addressing these issues is crucial for long-term financial security and the integrity of the crypto market.
