A Canadian Olympic athlete is at the center of a large-scale cocaine trafficking case involving cryptocurrency payments. Tether has stepped up its efforts to sever its ties to crime, freezing millions of people’s illicit funds.
Former Olympic snowboarder Ryan Wedding is suspected of using cryptocurrencies to facilitate payments in a large-scale cocaine trafficking operation, U.S. prosecutors allege.
The Canadian athlete is accused of leading a network that smuggled large amounts of cocaine into Canada from California.
In one exchange, a co-conspirator admitted to being given 293 kilograms of cocaine, saying, “Ready boss, 293 kilograms of orders delivered,” according to court filings.
The group is believed to have used encrypted messaging apps and Tether (USDT) to control and conceal drug transactions.
One of the payments tracked was 17,300 USDT related to drug trafficking.
Wedding was imprisoned in 2010 for cocaine trafficking, and has been facing unresolved trafficking charges in Canada since 2015.
connect crime
Tether is trying to shed its image as a shady stablecoin dealer, with USDT frequently linked to crime and money laundering.
In 2023, Tether froze $900,000 in connection with Hamas and Ukraine scams and $225 million in connection with crypto romance scams.
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The company has stepped up efforts this year to work with law enforcement to track and freeze suspicious transactions. This included a partnership with blockchain analytics company Chainaracy to enhance USDT monitoring and tracking.
In September 2024, Tether helped the U.S. Department of Justice seize more than $6 million related to a Southeast Asian cryptocurrency scam.
CEO Paolo Ardoino said the company is “ready to work with government agencies” to combat criminal abuse of the platform.
Tether claims to have blocked more than $1.8 billion in illicit funds to date.
Virtual currency market movements
Bitcoin is trading at $68,390, up 0.7% in the past 24 hours. Ethereum is trading up 0.7% at $2,648.
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Kyle Baird is DL News’ weekend editor. Any tips? Email kbaird@dlnews.com.
