Feds Charge Olympic Snowboarder for Alleged Role in Cocaine Trafficking Gang Using Tether
A former Olympic snowboarder, Ryan James Wedding, has been hit with criminal charges by federal authorities for his alleged involvement in a cocaine trafficking gang that utilized the stablecoin Tether (USDT) as a crucial element in its billion-dollar operation.
The U.S. Department of Justice (DOJ) filed an indictment on Thursday, accusing Wedding and 15 other defendants of running a drug-trafficking syndicate that transported cocaine from Colombia through Mexico into the United States and Canada.
According to the indictment, the crime gang engaged in multiple murders as part of their criminal activities and used cryptocurrency, specifically Tether, to avoid detection by law enforcement.
The indictment revealed that payments for cocaine were made using Tether cryptocurrency services, with QR codes being sent to drug runners to receive payment in USDT.
As part of the investigation, the DOJ seized over $3.2 million in cryptocurrency, more than one ton of cocaine, three firearms, dozens of rounds of ammunition, and $255,400 in cash.
Authorities have reported that Wedding is currently on the run, with the FBI offering a $50,000 reward for information leading to his arrest and extradition. Wedding, a 47-year-old former Olympian who competed for Canada in the 2002 Winter Olympics, had been residing in Mexico prior to his fugitive status.
United States Attorney Martin Estrada stated, “As alleged in the indictment, an Olympic athlete-turned-drug lord is now charged with leading a transnational organized crime group that engaged in cocaine trafficking and murder, including of innocent civilians.”
Controversy Surrounding Tether
Tether, the third-largest cryptocurrency by market cap, has come under scrutiny for its lack of transparency and regulatory compliance. The company has faced criticism for its failure to provide adequate documentation proving that U.S. dollars back the USDT stablecoin and for its lack of independent audits.
In 2021, Tether agreed to cease operations in New York following a state attorney general investigation that found the company had misled investors about the backing of its stablecoin.
Despite these challenges, Tether has released quarterly attestations and transparency reports to demonstrate compliance and has collaborated with law enforcement agencies to freeze funds suspected of being used for criminal activities.
USDT remains a popular choice for traders in the cryptocurrency ecosystem due to its liquidity and ability to facilitate quick trades and conversions between crypto and fiat currencies.
The ongoing legal issues surrounding Tether highlight the importance of regulatory oversight and transparency in the cryptocurrency industry.
Edited by Andrew Hayward