The creator of the Tron blockchain, Justin Sun, recently responded to the United Nations report's scathing remarks regarding the use of the well-known stablecoin USDT for illegal purposes. The UN report, which concentrated on the possible abuse of blockchain technology, specifically called attention to USDT's involvement in Southeast Asian frauds and money laundering. In his remarks, Sun refuted a few of the report's claims and underlined Tron's dedication to upholding the integrity of blockchain technology.
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Tron's Reaction to the UN's Concerns Regarding USDT Abuse
The UN study expressed concern about the growing usage of Tether's USDT for illegal purposes, citing Southeast Asian online gambling as a key conduit. In response to these worries, Sun stated that the situation was serious but denied some information about USDT transactions on the Tron network's TRC-20 protocol. He emphasized the network's commitment to preventing blockchain technology abuse while calling attention to errors in the UN report's conclusions.
To uphold its dedication to openness and legal compliance, Tron has described its important role in circling USDT via the TRC-20 protocol. In order to keep an eye on transactions on its blockchain, the network has disclosed its partnerships with on-chain forensic specialists. Tron emphasized that it is committed to maintaining the integrity of its blockchain operations, even though it is a decentralized platform and cannot directly control the behavior of third parties, such as Tether.
Tether's Opinion Regarding Its Function and Countermeasures
The company that powers USDT, Tether, replied to the UN report
emphasizing both its dedication to openness and its critical role in
emerging economies. According to Tether, these elements reduce the
likelihood that USDT would be used as a weapon for illicit
activities. Additionally, public blockchains for USDT transactions
allow for the tracing of every transaction. Additionally, the
business has highlighted its proactive measures to prevent
misuse.
In November, Tether and the US Department of Justice worked together to freeze almost $225 million in USDT that was connected to a human trafficking organization. This measure was emphasized in reaction to the UN report's emphasis on the use of USDT in a number of dishonest activities. Furthermore, Tether took issue with the report's inadequate acknowledgement of its assistance to emerging nations and its endeavors to promote financial inclusion.
Law enforcement Activities and International Collaboration
The UN report did note a number of effective law enforcement
actions against money laundering networks that were abusing Tether
for illicit purposes. In August of last year, a significant
operation in Singapore was able to recover almost $735 million in
cryptocurrency and cash. These operations highlight the continuous
difficulty and the coordinated efforts by numerous international
organizations to counter the usage of cryptocurrencies for illicit
purposes.
With his background in diplomacy, Justin Sun promoted more blockchain education and proposed joint ventures between Tron, HTX DAO, and the UN to raise awareness of blockchain technology worldwide. He emphasized the value of blockchain technology in promoting international collaboration as well as its ability to support legal financial operations and transactions anywhere.