- A Canadian Olympian is at the center of a major cocaine trafficking case involving crypto payments.
- Tether is ramping up efforts to cut ties with crime, freezing millions in illicit funds.
Ryan Wedding, a former Olympic snowboarder, allegedly leveraged crypto to facilitate payments in a major cocaine trafficking operation, US prosecutors claim.
The Canadian athlete is accused of leading a network that smuggled large quantities of cocaine from California to Canada.
In one exchange, a co-conspirator confirmed the delivery of 293 kilogrammes of cocaine, saying, “Ready boss, delivered the order of 293,” court filings show.
The group is believed to have used encrypted messaging apps and Tether (USDT) to manage and mask their drug transactions.
One tracked payment was for 17,300 USDT linked to a drug deal.
Wedding previously went to prison for cocaine trafficking in 2010 and still has unresolved trafficking charges in Canada from 2015.
Tether in crime
Tether is trying to shed its image as a shady stablecoin dealer, with its USDT frequently linked to crime and money laundering.
In 2023, Tether froze $900,000 linked to Hamas and Ukraine scams and $225 million tied to crypto romance scams.
This year, the company has ramped up its efforts to collaborate with law enforcement to track and freeze suspicious transactions. This included a partnership with the blockchain analysis firm Chainalysis to enhance USDT monitoring and tracking.
In September 2024, Tether helped the US Department of Justice seize over $6 million connected to a Southeast Asian crypto scam.
“We stand ready to collaborate with government agencies” to fight criminal misuse of the platform, CEO Paolo Ardoino stated.
To date, Tether claims to have blocked over $1.8 billion in illicit funds.
Crypto market movers
- Bitcoin is up 0.7% over the past 24 hours to trade at $68,390.
- Ethereum is up 0.7% to trade at $2,648.
What we are reading
FTX exec’s lawyers argue for prison time served with claim he saved Japan unit — DL News
Vitalik Has Gone ‘Founder Mode.’ Is This Just What Ethereum Needs? — Unchained
How BlackRock helped Bitcoin get its mojo back — DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
