Tron founder Justin Sun recently responded to a United Nations report regarding the use of the stablecoin USDT, operating on Tron’s TRC-20 protocol, in illicit financial activities. The report, which highlights the increase in fraudulent activity involving USDT, particularly in Southeast Asia, has caused ripples in the blockchain community, with Tron and Tether (the issuer of USDT) vigorously defending their operations.
Tron’s response to UN concerns
Justin Sun stressed that Tron “fully supports” the idea of preventing malicious actors from abusing blockchain technology. However, he said that to achieve this goal, a better understanding of blockchain technology is needed. According to Tron DAO, it is inaccurate to say that USDT transactions carried out via Tron’s TRC-20 protocol are a preferred choice for malicious actors. Tron is the most popular blockchain for USDT, with over 50% of the global market share, meaning it is used disproportionately more than others, including Ethereum, due to its speed and low cost.
Position and Efforts of Tether Against Abuse
Tether also responded to the UN report, highlighting the crucial role of its stablecoins in developing economies and its commitment to transparency. The company argued that the public nature of blockchain transactions makes USDT an impractical choice for illicit activity, highlighting a recent incident where it helped the US Department of Justice freeze around $225 million in USDT linked to a human trafficking group, demonstrating its efforts against abuse.
Global Cooperation and Blockchain Education
Justin Sun highlighted the importance of blockchain technology for global cooperation and suggested potential collaboration between Tron, HTX DAO, and the United Nations to expand the reach and understanding of blockchain technology globally. This call for education and collaboration reflects a growing recognition of the importance of blockchain in various sectors.
Justin Sun and Tron’s response, as well as Tether’s stance, reflect a broader dialogue within the cryptocurrency and blockchain community about the responsible use of these technologies. As the industry continues to evolve, the focus on transparency, legal compliance and the potential for global positive impact remains a central theme. Ongoing discussions and responses to the UN report highlight the complexities and challenges facing this rapidly evolving sector.
