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Justin Sun, the founder of the Tron blockchain, contested the UN report’s assertions on USDT, pointing out factual inconsistencies and affirming Tron’s dedication to maintaining blockchain integrity.
The UN report highlighted concerns over the misuse of blockchain technology, focusing on the role of USDT in money laundering and scams, particularly in Southeast Asia.
In a Jan. 19 X post, Sun acknowledged these concerns but disputed certain details related to USDT transactions on Tron’s TRC-20 protocol. He emphasized Tron’s dedication to working against blockchain misuse while also pointing out inaccuracies in the UN’s findings.
As an individual serving as a diplomatic ambassador in international institutions (UN, WTO), I am deeply aware of the importance of blockchain technology for global cooperation. At the same time, education of blockchain knowledge are particularly important. #TRON and @HTX_DAO are… https://t.co/jwloiDygzY
— H.E. Justin Sun 孙宇晨 (@justinsuntron) January 19, 2024The UN’s warning centered on the increasing utilization of Tether’s USDT in unlawful activities, with online gambling platforms in Southeast Asia being significant channels. Tether, the company behind USDT, responded by emphasizing its vital role in developing economies and its commitment to transparency, arguing that these factors make USDT a less likely tool for illegal operations.
Tether also highlighted its efforts to combat misuse, including a November incident where it helped the U.S. Department of Justice freeze about $225 million in USDT linked to a human trafficking group. This was in response to the UN report’s emphasis on the use of USDT in various fraudulent schemes, such as “pig butchering” scams.
The report further delved into successful law enforcement operations against money laundering networks using Tether for illegal activities, including a major operation in Singapore last August that recovered around $735 million in cash and cryptocurrencies.
Tron’s statement, following Sun’s remarks, focused on its significant role in the circulation of USDT through the TRC-20 protocol and its global market presence. The network also discussed its partnerships with on-chain forensic experts to monitor transactions on its blockchain, reiterating that as a decentralized platform, it cannot directly regulate third-party actions, including those of Tether.
Sun, drawing from his diplomatic experience, stressed the importance of blockchain technology in global cooperation. He advocated for increased blockchain education and suggested potential collaboration between Tron, HTX DAO, and the UN to further the global reach of blockchain technology.
Tether had previously expressed its disappointment with the UN report, particularly with the focus on USDT’s alleged involvement in illicit activities. The firm argued that the use of public blockchains for Tether tokens enables tracking of every transaction, making USDT an impractical choice for criminal use.
Tether further criticized the report for “ignoring its role in helping developing economies,” underscoring their commitment to facilitating financial inclusion.
