Tether Accused Of Corruption, 'Suspicious' Business In Times Square Billboard Ad

A nonprofit that focuses on issues and products or services of concern to consumers has accused stablecoin giant Tether of having a "shady" business that may not be so stable after all.

Consumers' Research ran an ad on a billboard in Times Square, New York City Tuesday, wherein the cryptocurrency titan is accused of "corruption." The nonprofit also set up a website dedicated to its cause of informing consumers about Tether's alleged suspicious business dealings.

"We're sounding the alarm on the threat so-called "stablecoin" @Tether_to poses to consumers and their suspicious business practices. Tether thrives in the shadows, refusing to be audited and constantly dodging fraud investigations," the organization wrote in a statement on X (formerly Twitter).

Consumers' Research executive director Will Hild posted the ad campaign on X, saying Tether is "anything but stable" and consumers have now been warned about the company.

Hild further said in a statement that terrorists and human and drug traffickers have routinely used USDT in their activities. He went on to warn consumers to be wary of stablecoin companies that refuse to "properly certify that they actually hold the assets they claim."

In the video, a voiceover asks whether Tether "is the next FTX," and states that the company received a 4/5 high risk rating from S&P. It also suggests that the "fraud" and "price manipulation" within the stablecoin behemoth could be the reason why USDT is the "go-to" digital asset for cartels, terrorists, and human trafficking networks.

The website sponsored by Consumers' Research, tetheredtocorruption.com, displays quotes taken from various outlets that reported on some of the allegations hurled against Tether, including Bloomberg, Forbes, Protos, and The Wall Street Journal.

As of writing, Tether has not made a statement regarding the matter. It did not immediately respond to International Business Times' request for comment.

News of the recent allegations against Tether comes about a month after it announced a partnership with prominent blockchain analytics firm Chainalysis as part of its efforts to enhance compliance practices amid mounting scrutiny over the USDT's alleged use by money laundering groups.

In January, the United Nations' Office on Drugs and Crime (UNODC) alleged in a report that USDT was increasingly becoming among the "popular vehicles" used by crypto-based money launderers in Southeast Asia.

Bloomberg also reported late in March that the U.S. and the United Kingdom were investigating Tether after some $20 billion in USDT passed through Russia-based Garantex, which has been sanctioned. At the time, the report noted that the probe was in its early stages and conclusions on Tether's supposed wrongdoing were too early to make.