Yesterday I covered a scam of Instant loan apps. I wanted to know the trail of money from variety of the Asian nations all the way to the China. As the person named Li Xiang is the one running these scams and there is no paper and the payment trails. So I wanted to know what has stopped the trail.
And then I came across Tether as one of the sources being used as a stablecoin to settle these payments between the people who manage these scams. I am sure that there are other currencies in work too however stablecoins are used in these places.
Let's take a look at the United Nations Repot on the Tether being the choice for payment settlement in the SEA nations.
Drugs and Money Laundering using Tether for International Payment Settlement
United nation has been keeping the data of variety of the crimes commited around the world. They release such dataset on year by year basis too. Which we can take in downloads and compare it in the software like Power BI etc. This time the data is specific to the crime which are related to the drugs and the money laundering. And this data is out now for the people to use as well.
UN has the office of United Nations Office on Drugs and Crime (UNODC). As this office has collected data on the variety of the mafia and the crimes where the crypto was used to pay for the items and the settlment of the payments were done using the Tether. And one more thing is that international payment settlements happen outside the central exchange yet the data cover some percent of those.
You can check the reference here
Bank Frauds Settlement throguh Tether
There are plenty of bank frauds happening and the money is collected over the random bank accounts. Some of those bank accounts make use of the rogue accounts which go down once the police finds out and then the people who run such accounts then transfer the local funds to the crypto. And their choice in this case is the USDT. And then they make sure to transfer it through variety of the hops to avoid getting detected.
It seems the UN teams who are taking a hold of the data like this. And the data captured from such type of the crimes is going to be shared with the govt and the people who are going to take over the criminals and find their trails. However the bank frauds eventually get caught, as the Tether is centralized and they leak a lot of personal data and in short it is easier to freeze the same.
You can check out the reference here
Li Xiang and Instant Loan app Money trail
SEA nation has this massive scam of the instant loan app. And not just loan app but also the pension and the few other fintech companies being scammed by one person in China and his octopus firms. He is Li Xiang and he has been settling the international funds through the Tether USD. And it seems like he ran variety of the apps in the other nations to spread fake news. And it has hurt the politics and the govt in many nations.
United Nation has taken the hold of this news and they have focused on the USDT's nature of the centralized approach. And using that they can take capture variety of the criminals in the chain. Capturing the shark in the manual process especially someone like Li xiang would be harder but UN can list such people on their blacklist which would bring some level of awareness.
United Nations data on the use of the Tether for the crimes like drug and the money laundering is going to affect the market. And this would push the centralized nature of the crypto and it could hurt the new adopters on the Decenralized nature of the crypto.