Tether (USDT), the world’s most widely used stablecoin, is playing a growing role in financing conflicts and wars across the globe. Pegged to the U.S. dollar and offering fast, borderless transactions, USDT has become a preferred tool for covert financial operations in war zones and under-sanctioned territories.
Militant groups, warlords, and even state actors are increasingly using USDT to bypass traditional banking systems and international sanctions. Its liquidity, stability, and acceptance on global exchanges allow users to quickly convert crypto into local currencies or goods, including weapons, drones, fuel, and surveillance tech.
From the Middle East to Eastern Europe, there are mounting reports that USDT is being used to move millions of dollars in military funding across digital wallets with minimal traceability. While blockchain records all transactions, the lack of personal identity on many crypto exchanges has made enforcement and tracking extremely difficult, creating a digital loophole in the global fight against war financing.
