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Feds: Tether Has Become a Money Laundering Tool for Mexican Drug Trafficker
Tether is being used on a massive scale by large scale drug traffickers, to the point where Tether is sold cheaper in Mexico due to its links to drugs, according to court records reviewed by 404 Media.
A money laundering organization allegedly connected to large seizures of cocaine inside the United States and works with cartels in Mexico and Colombia has moved at least tens of millions of dollars using a string of front businesses, cash drop-offs, and massive transfers of cryptocurrency, according to recently unsealed court records reviewed by 404 Media. The court records provide deep insight into how alleged drug traffickers have turned to cryptocurrency, and in particular Tether (USDT), as a way to quickly move wealth across borders in recent years. One confidential source told investigators “the current trend was to purchase USDT from Mexico-based groups at a cheaper rate than the market price, and then sell the USDT in Colombia at Casa de Cambios [currency exchanges], virtual currency exchanges, over-the-counter (OTC) transactions, or peer-to-peer transactions (P2P).
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