Duncan, 35, his wife Maja, 32, and Ski Cross High Performance Director Willy Raine, 48, were accused of taking a auto outside a bar just after midnight Saturday and driving it near the Pyeongchang athletes village, CBC reported.
Raine was charged with impaired driving, CBC News and the Canadian Press reported.
The Canadian athlete competes in the Freestyle Skiing Men's Ski Cross Seeding on day 12 of the PyeongChang 2018 Winter Olympic Games on Wednesday, a few days before his arrest..
Raine was reportedly behind the wheel, and had a blood-alcohol level of 0.16 at the time of the arrest.
Although the names of the trio involved have yet to be revealed by the Canadian Olympic committee, reports in Canada are claiming that skier Dave Duncan is the guilty athlete in question. In Pyeongchang, the legal limit is 0.05, and drunk driving can carry a sentence of three years in prison or a 3 million won fine.
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The three were released on Saturday but restricted from leaving Canada, CBC reported. We are deeply disappointed in the behaviours in these individuals.
Raine also apologized for his "inexcusable actions", saying that "words are not enough to express how sorry I am".
"We are aware that they are cooperating with the authorities on this matter". "I would also like to apologize to the owner of the vehicle that was involved", he said.
"We can confirm that an incident occurred involving the police around midnight Friday or early morning Saturday", said Overholt.
COC Secretary General Chris Overholt said: "We expect our athletes and team members to conduct themselves responsibly and in keeping with our Canadian and Olympic values". However until we know the results of the investigation we're not really in a position to comment further, ' he added.