Americans should be careful about using the cryptocurrency Tether because of its use by terrorists and drug cartels, according to a new multimillion-dollar campaign by a consumer group.
Consumers’ Research, an independent education organization for consumers, launched a multi-pronged media campaign on Tuesday warning that Americans might be opening themselves up to financial risk by using Tether. Tether is one of the world’s most commonly traded cryptocurrencies and is linked one-to-one to the U.S. dollar.
“We are shining a light on Tether for their suspicious business practices, including a decade-long refusal to perform an audit and the routine use of the product by terrorists and traffickers of drugs and humans,” Consumers’ Research Executive Director Will Hild said in a statement shared with The Daily Wire.
The campaign against Tether includes a seven-figure national television buy, a Times Square digital billboard, and a website called “Tethered Corruption.”
“Is Tether the next FTX?” the ad asks, before saying that the cryptocurrency is “chronically under investigation” and that it’s the “go-to cryptocurrency” for drug cartels and human traffickers.
Multiple reports in the last year have highlighted Tether’s use by Hamas, Chinese fentanyl suppliers, and the North Korean nuclear program. Back in 2020, the Justice Department charged six members of an international drug ring with using Tether to bribe a government official.
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The cryptocurrency has also been used by countries like Russia and Venezuela to get around sanctions. According to some estimates, there were about $19.3 billion in illicit Tether transactions in 2023.
Tether has pushed back on allegations of wrongdoing, saying that estimates of illicit activity are exaggerated and that it aids law enforcement.
“We have always assisted law enforcement when called upon to act, and we remain fully committed to continuing to work proactively with agencies globally,” the company said in December 2023. “Tether has and will assist in identifying and freezing addresses subject to sanctions, engaged in illicit activity, or engaged in any form of terrorist financing.”
However, Consumers’ Research says that Tether has evaded real accountability, comparing it to FTX, a cryptocurrency exchange that imploded in November 2022, costing customers more than $10 billion.
“Given these warning signs, we fear that Tether may very well be the next FTX,” Hild said. “Consumers should be wary of any so-called stablecoin that refuses to properly certify that they actually hold the assets they claim.”
