Challenging the UN report’s assertions on USDT, Justin Sun emphasizes factual discrepancies and Tron’s dedication to blockchain integrity. The report associates USDT with money laundering and scams in Southeast Asia, but Tether defends its role in supporting developing economies.
Tron underscores its limited control over third-party actions on its decentralized network, reiterating its leadership in USDT circulation and commitment to transparency.
Justin Sun Responds to UN Critique of USDT
Justin Sun, Tron’s founder, recently offered a mixed response to a United Nations report critiquing the use of USDT. While acknowledging the UN’s concerns about blockchain technology misuse, Sun diverged on certain factual aspects and highlighted Tron’s commitment to supporting the UN’s efforts against blockchain misuse. He also pointed out inaccuracies in the report regarding USDT transactions on Tron’s TRC-20 protocol.
#Tron wholeheartedly supports the proposal of the United Nations, but we have different views on the professional facts and handling methods of blockchain technology. We welcome you to refer to this report. https://t.co/LF4ovqwKnK
— H.E. Justin Sun 孙宇晨 (@justinsuntron) January 19, 2024
The UN report raised alarms about the increasing use of Tether’s USDT for money laundering and scams, particularly in Southeast Asia. Online gambling platforms were identified as major conduits for such activities, with USDT being a prominent payment method. Tether defended its role, emphasizing its significance in developing economies and highlighting the transparency that makes USDT an unlikely tool for illicit activities.
The report highlighted the prevalent use of USDT in various frauds, including “pig butchering” scams. Tether, committed to combating such abuses, cited an instance from November where it assisted the U.S. Department of Justice in freezing about $225 million in USDT linked to a human trafficking group involved in such scams.
Additionally, the report detailed law enforcement efforts to disrupt money laundering networks using Tether for illicit activities. A notable operation in Singapore last August successfully dismantled a network and recovered approximately $735 million in cash and cryptocurrencies.
Tron’s Response and Justin Sun’s Global Vision
In response to the UN report, Tron emphasized its leadership in USDT circulation through the TRC-20 protocol, highlighting its significant global market share. The network reiterated its commitment to actively engaging with on-chain forensic partners to monitor blockchain transactions. However, Tron clarified that, as a decentralized technology, it lacks direct control over third-party actions, including those of Tether.
Taking a broader perspective, Justin Sun, Tron’s founder, expressed his understanding of the vital role of blockchain technology in global cooperation, drawing on his experience as a diplomatic ambassador at international institutions. He underscored the importance of blockchain education and expressed openness to collaboration between Tron, HTX DAO, and the UN to further the globalization of blockchain technology.
Previously, Tether, the entity behind USDT, expressed disappointment with the report, particularly its emphasis on USDT’s alleged involvement in illicit activities. Tether argued that the transparency enabled by Tether tokens on public blockchains allows for the tracking of every transaction, making USDT an impractical choice for illegal use. The company criticized the report for overlooking its role in supporting developing economies, emphasizing its commitment to facilitating financial inclusion.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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