Tron blockchain founder Justin Sun has recently addressed the United Nations report’s critical observations on using USDT, a popular stablecoin, in illicit activities. The UN report, which focused on the potential misuse of blockchain technology, particularly highlighted the role of USDT in money laundering and scams in Southeast Asia. Sun, in his statement, contested some of the report’s assertions and emphasized Tron’s commitment to maintaining the integrity of blockchain technology.

Tron’s Response to UN’s Concerns Over USDT Misuse

The UN report raised alarms over the increasing use of Tether’s USDT in unlawful activities, with a special mention of online gambling in Southeast Asia as a significant conduit. Responding to these concerns, Sun acknowledged the gravity of the situation but refuted specific details related to USDT transactions on the TRC-20 protocol, a part of the Tron network. He underscored the network’s dedication to combating the misuse of blockchain technology, pointing out inaccuracies in the UN report’s findings.

Tron has outlined its significant role in circling USDT through the TRC-20 protocol to support its commitment to transparency and legal compliance. The network also mentioned its collaborations with on-chain forensic experts to monitor transactions on its blockchain. While emphasizing that, as a decentralized platform, it cannot directly regulate the actions of third parties, including Tether, Tron reiterated its dedication to ensuring the integrity of its blockchain operations.

Tether’s Position on Its Role and Efforts Against Misuse

Tether, the company behind USDT, responded to the UN report highlighting its crucial role in developing economies and its commitment to transparency. Tether argued that these factors, along with public blockchains for USDT transactions, which enable tracking of every transaction, make USDT a less likely tool for illegal operations. The company has also emphasized its proactive efforts to combat misuse.

In a notable incident in November, Tether collaborated with the U.S. Department of Justice to freeze approximately $225 million in USDT linked to a human trafficking group. This action was highlighted in response to the UN report’s focus on using USDT in various fraudulent schemes. Additionally, Tether criticized the report for not adequately recognizing its role in aiding developing economies and its efforts in facilitating financial inclusion.

Law Enforcement Operations and Global Cooperation

The UN report did acknowledge several successful law enforcement operations against money laundering networks using Tether for illegal activities. One major operation in Singapore recovered around $735 million in cash and cryptocurrencies last August. These operations underscore the ongoing challenge and the concerted efforts by various global entities to address the misuse of cryptocurrencies in criminal activities.

Using his diplomatic experience, Justin Sun advocated for increased blockchain education and suggested potential collaborations between Tron, HTX DAO, and the United Nations to expand blockchain technology’s global reach and understanding. He stressed the importance of blockchain technology in fostering global cooperation and its potential to aid legitimate financial transactions and operations worldwide.

Read Also: Binance Takes Legal Stand, Eyes SEC’s Fraud Suit Dismissal

 

The post Tron Founder Justin Sun Counters UN Report, Upholds USDT Integrity appeared first on CoinGape.

---

Filed under: News - @ January 1, 1970 12:00 am