USDT deposits and withdrawals between gambling websites via crypto payment platforms are on the rise, according to a Wu Blockchain report authored by Bitrace.

A study of 20 active online gambling sites revealed that there were more than 5 million new USDT deposits and other related addresses in 2022 with 161 new USDT payment platforms.

Data from these 20 gaming platforms shows a total outflow of 4.2 billion USDT between 2021 and 2022. $780 million USDT was deposited in 60,000 exchange addresses, representing 18.57% of all gaming outflows online gambling.

The remaining funds were distributed to 310,000 individual addresses. The funds were then transferred through the blockchain network via address transfers, chain lending, anonymous transactions, and cross-chain transfers, thereby contaminating more crypto addresses.

According to the report, 1,031 new online gambling platforms will use USDT by 2022.

Leading the list of contaminated addresses in China

More than 53% of “contaminated” addresses are Chinese. The CThe Chinese central bank announced that all cryptocurrency transactions, mining, and trading were illegal in 2021. This, therefore, prohibits the provision of any form of online gambling business to its citizens.

However, some online gambling institutions are based outside of China and allow players to use USDT to avoid money movement tracking by law enforcement. Furthermore, the report stated that the USDT that entered online gambling pools is “tainted” and spreads through withdrawals, affecting the addresses of normal users.

In order to curb money laundering through virtual currency transactions and other methods, the National People’s Congress passed the Law against Telecommunications Network Fraud which came into effect on December 1, 2022.

As China steps up its opposition to illicit cryptocurrency activities, authorities in Hunan province recently arrested 63 people for allegedly laundering $1.7 billion with cryptocurrencies obtained from gambling.

Posted in: Tether, Crime, Web3

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This post Gambling-related USDT funds grow as 1k new online gambling websites use Tether

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