Tron Issues Robust Rebuttal to UN's USDT Criticism, According to Report

Author : Elisabeth Louise | Published On : 22 Jan 2024

The founder of the Tron blockchain, Justin Sun, has taken a firm stance against a recent United Nations report that raised concerns about the use of the stablecoin USDT. While acknowledging the UN's vigilance against blockchain misuse, Sun diverged on certain factual aspects and emphasized Tron's commitment to blockchain integrity.

The UN report linked USDT to money laundering and scams in Southeast Asia, particularly highlighting its role in online gambling platforms. In response, Tether defended its contribution to developing economies and emphasized the transparency of USDT, asserting it as an unlikely tool for illicit activities.

In Sun's response, he not only acknowledged the UN's concerns about the misuse of blockchain technology but also pointed out inaccuracies in the report, particularly regarding USDT transactions on Tron's TRC-20 protocol. Tron, while asserting its leadership in USDT circulation, clarified its limitations in controlling third-party actions on its decentralized network.

The UN report highlighted the widespread use of USDT in various forms of fraud, including "pig butchering" scams. Tether, in its defense, cited an instance where it assisted the U.S. Department of Justice in freezing $225 million in USDT linked to a human trafficking group involved in such scams.

Tron, in its statement, emphasized its continuous engagement with on-chain forensic partners to monitor blockchain transactions. Sun, drawing on his diplomatic experience, expressed his understanding of the importance of blockchain technology for global cooperation and advocated for collaboration between Tron, HTX DAO, and the UN in the globalization of blockchain.