The American research center Consumer’s Research accused Tether, which issues USDT stablecoins, of facilitating illegal activities and circumventing international sanctions.

The non-profit organization Consumers’ Research has launched a public campaign against Tether, insisting that the company may be linked to terrorist organizations and human traffickers using USDT stablecoins.

The organization placed a billboard in New York’s Times Square that read Tetheredtocorruption. Will Hild, executive director of consumer protection at Consumer’s Research, argues that USDT is being used by “authoritarian regimes,” particularly Russia and China, to circumvent economic sanctions.

“Russia is trying to avoid sanctions with Tether. Venezuela is doing the same. USDT is even used in human trafficking. Last year, Tether was linked to approximately $20 billion in illicit transactions. Various terrorist groups, including Hamas, al-Qaeda and ISIS, make transactions with these stablecoins. Transaction amounts amount to millions of dollars,” says Will Heald.

In addition to accusations of using USDT to finance terrorism and circumvent international sanctions, Consumer’s Research claims that Tether refuses to undergo due diligence that would prove it has sufficient reserves for stablecoins. Heald compared Tether to the bankrupt cryptocurrency exchange FTX, suggesting that the USDT issuer will also collapse in the future.

Tether management hastened to refute the accusations, saying that the company’s assets are fully secured. The Tether team assures that it complies with the laws and cooperates with the Federal Bureau of Investigation, as well as the US Secret Service.

According to MistTrack analysts, in May Tether blocked about $5.2 million on 12 cryptocurrency addresses that could be related to phishing operations. In November 2023, Tether, with the assistance of the OKX crypto exchange, froze $225 million in USDT that was associated with a large criminal syndicate involved in human trafficking in Southeast Asia.