A new multimillion-dollar ad campaign from watchdog Consumers' Research is warning of the threats posed by Tether, a so-called "stablecoin" that's used by terrorists, traffickers, crime rings, and entities sanctioned by the United States to move funds and conduct illicit business.
The Wall Street Journal reported last year that Tether, "bridging the worlds of cryptocurrencies and the dollar, is increasingly showing up in investigations tied to money laundering, terror financing and sanctions evasion." While some use it for legitimate purposes, WSJ also noted that Tether is also being used for "illicit finance, according to indictments, blockchain analysis and sanctions notices" including for "financing Hamas, paying Chinese fentanyl suppliers, funding the North Korean nuclear program and helping buy sanctioned Venezuelan oil for sanctioned Russian oligarchs."
In addition to emphasizing Tether's apparently favored status among illicit businesses, Tether's poor marks from regulators are also featured in the Consumers' Research ad campaign. S&P, for one, gave Tether a four-out-of-five "high risk" rating, and observers such as Consumers' Research Executive Director Will Hild fear the "stablecoin" could be the next FTX.
Now, Hild and Consumers' Research are blasting Tether in a seven-figure national TV ad buy and with a digital billboard in Times Square, mobile billboards around New York City and Washington, D.C., and a targeted digital ad campaign on social media and online news outlets. The campaign also includes the launch of a new website — TetheredToCorruption.com — with more information on the illicit uses of and threats posed by Tether.
In a statement provided to Townhall, Hild emphasized that Consumers' Research "has acted as the neighborhood watch in the market" since its 1929 founding, "alerting consumers to bad actors and unsafe products."
"The technology may have changed dramatically over the last 95 years, to the point that money itself is now being revolutionized, but our mission remains the same," Hild continued. "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."
"Given these warning signs, we fear that Tether may very well be the next FTX. Consumers should be wary of any so-called stablecoin that refuses to properly certify that they actually hold the assets they claim," warned Hild.