Is Tether linked to money laundering? TruthLabs Reports Shocking Results

Recent investigations by TruthLabs have revealed disturbing links between Tether, one of the largest stablecoins in the cryptocurrency market, and illicit activities, including money laundering and links to terrorist groups. These results add to findings regarding Crypto Israel Aid and a Hamas-favored crypto exchange, Cex.io.

TruthLabs’ first findings on Tether

Eight months ago, TruthLabs dug into a Justice Department report detailing Tether addresses that were in one way or another linked to money laundering and terrorist financing. The investigation found that the report did not include some major addresses linked to such activities.

It seemed strange to TruthLabs that “some of the addresses that were not only money launderers, but also massive rug artists and protocol exploiters directly linked to these chain terrorist groups were not included.”

Such an omission raises questions about the completeness and transparency of the report. TruthLabs pointed out:

“Blockchain is the Truth. The addresses they didn’t include were authors 10 times or even 10,000 times larger than the ones they included in the report and blacklisted.

Connections between Cex.io and Hamas

TruthLabs studied Crypto Israel Aid funding addresses and discovered a worrying trend. The original funding addresses were linked to the same addresses identified in the DOJ report, but were not blacklisted. TruthLabs questions the impartiality of US regulatory agencies:

“So when you tell me that Israel runs the American government and its agencies, I find it hard not to believe it. »

The October 11, 2023 TruthLabs post showed that one of Hamas’ favorite crypto exchanges is Cex.io. Among the list of exchanges within the Silvergate Bank network is Cex.io. It was linked to Capital Financial Plus. CFP was involved in widespread PPP loan fraud, making loans to fake people while denying those loans to legitimate small business owners.

TruthLabs pointed out: “CFP was one of the largest banks to fall victim to PPP fraud, making tons of loans to fake people and denying loans from real small business owners. »

In addition, CFP had access to a $125 million risk-free government home loan program, which added to this misused money scheme. TruthLabs highlighted the broader implications of these findings as money printing during COVID-19 is very high and borders are open:

“Oh, and we printed about 50 years of money during COVID, and our borders are wide open.”

Forbes and UNODC report on Tether

The concerns expressed by TruthLabs are consistent with warnings from other authorities. In January 2024, Forbes reported on a UNODC warning that Tether was becoming a favored platform for money laundering and fraud, particularly in East and Southeast Asia. The report states that Tether’s stability, ease of use, anonymity and low transaction fees are key factors in its appeal to criminals.

The UNODC highlighted the “increasing volume” of cyber fraud, money laundering and underground banking cases involving Tether. Specific schemes include “sextortion” and “pig slaughter,” which exploit social engineering to extract money from victims.

Online gambling platforms have also been identified as major vehicles for Tether-based money laundering, contributing to the rapid growth of the illicit digital economy in the region.

In short….

Combined with warnings from international organizations, TruthLabs’ revelations paint a very critical picture of Tether’s involvement in illicit activities. Links to terrorist groups, money laundering and fraud underpin the need for greater control and transparency in the cryptocurrency market.