Justin Sun, the creator of the Tron blockchain, has challenged the findings of a UN report regarding USDT, citing factual inconsistencies. The UN report raised concerns about the misuse of blockchain technology, with a focus on USDT’s role in money laundering and scams in Southeast Asia.
In a recent post, Sun acknowledged these concerns but disputed specific details related to USDT transactions on Tron’s TRC-20 protocol. He underscored Tron’s commitment to preventing blockchain misuse while pointing out inaccuracies in the UN’s report.
The UN report highlighted the growing use of Tether’s USDT in illicit activities, particularly on online gambling platforms in Southeast Asia. Tether responded by emphasizing its crucial role in developing economies, highlighting its transparency commitment, and asserting that USDT is less likely to be used for illegal operations. Tether also emphasized its efforts to combat misuse, citing a November incident where it assisted the U.S. Department of Justice in freezing $225 million in USDT linked to a human trafficking group.
The report detailed successful law enforcement operations against money laundering networks using Tether, including a major operation in Singapore last August that recovered around $735 million in cash and cryptocurrencies. Tron’s statement, following Sun’s remarks, highlighted its role in circulating USDT through the TRC-20 protocol and its global market presence. The network emphasized its partnerships with on-chain forensic experts to monitor transactions, reiterating its inability to directly regulate third-party actions, including those of Tether.
Sun, drawing on his diplomatic experience, stressed the importance of blockchain technology in global cooperation and advocated for increased blockchain education. He suggested potential collaboration between Tron, HTX DAO, and the UN to enhance the global reach of blockchain technology. Tether had previously expressed disappointment with the UN report, arguing that the focus on USDT’s alleged involvement in illicit activities ignored its role in helping developing economies and facilitating financial inclusion.
