Police probe claims Ryan Wedding network laundered drug proceeds through crypto

A newly unsealed U.S. indictment alleges that Canadian fugitive and former Olympic snowboarder Ryan Wedding orchestrated a complex cryptocurrency-based money-laundering system to move proceeds from an international drug-trafficking network.
According to American prosecutors, Wedding and several accomplices relied heavily on the stablecoin Tether and the Seychelles-based crypto exchange KuCoin to disguise and transfer large volumes of illicit funds. The indictment describes a “sophisticated Tether network” that broke up large sums into smaller payments, routed them through multiple intermediary wallets, and consolidated them in a central Tether wallet allegedly controlled by Wedding.
Investigators have identified transactions totalling hundreds of millions of dollars. Prosecutors say that between Aug. 15 and Sept. 7, 2024, Wedding sent 564,571 USDT—Tether’s digital token pegged to the U.S. dollar—to purchase roughly 300 kilograms of cocaine from Colombia. Another alleged co-conspirator, Rasheed Pascua Hossain, is accused of sending more than 200 million USDT to Wedding between April 29 and Oct. 8 of last year. Hossain was recently detained, the FBI confirmed, but provided no further details.
None of the allegations have been proven in court.
The case highlights growing concerns that criminal organizations are exploiting stablecoins—digital assets whose value is tied to fiat currency or commodities. Tether, with a market capitalization of more than US$180 billion, is the world’s largest stablecoin and widely used across global crypto markets.
Amber Scott, co-founder and chair of Outlier Solutions Inc., said Tether’s stability and accessibility have broad benefits, especially in countries facing economic turmoil. “But for all the same reasons it’s incredibly useful for legitimate financial inclusion, it’s also useful for criminals,” she said.
Tether’s predictable value, low transaction costs and broad liquidity make it an efficient tool for cross-border transfers. However, the stablecoin has drawn scrutiny from U.S. federal authorities over possible sanctions and anti-money-laundering violations. In a statement, Tether said it works closely with law enforcement and condemned illicit use of its platform, adding that its tokens are highly traceable.
Some police officials disagree. Toronto Police detective David Coffey noted that tracing Tether transactions can become difficult once funds are withdrawn in jurisdictions with weak regulatory oversight.
The U.S. Treasury Department has imposed sanctions on Wedding and several alleged collaborators. Tether says it has frozen all associated wallets listed under the sanctions.
Blockchain analysis firm Chainalysis reported that wallets linked to Wedding show indirect connections to Chinese chemical suppliers and wallets tied to drug cartels. The firm said these patterns illustrate how drug proceeds are laundered through networks connected to manufacturers of synthetic drug precursors and cutting agents.
KuCoin also features prominently in the allegations. Prosecutors claim that one of Wedding’s associates, Rolan Sokolovski, used the platform to send and receive millions of dollars in Tether as part of the laundering operation. KuCoin did not respond to requests for comment.
The exchange has faced mounting regulatory actions. Canada’s anti-money-laundering agency, FinTRAC, issued a nearly $20-million penalty against KuCoin’s operating entity earlier this year, at the time the largest in its history—surpassed weeks later by a $176-million penalty levied against another crypto firm. The Ontario Securities Commission previously banned KuCoin from operating in the province and fined it $2 million for running an unregistered platform. In the United States, the company pleaded guilty earlier this year to operating an unlicensed money-transmitting business and agreed to pay more than US$297 million in penalties.