Poland's Orlen Loses $424 Million in Venezuela Oil Deal Using USDT Payments

On January 5, 2024, a man entered the Hotel El Avila in Caracas carrying a USB drive containing approximately $60 million worth of Tether (USDT). The funds originated from Poland's state-owned oil company Orlen. However, the oil payment was never delivered.

According to the Financial Times, Orlen lost around $424 million, with three former executives currently facing criminal charges.

The deal began at a Formula 1 weekend in Abu Dhabi in November 2023. Representatives of Orlen Trading Switzerland met a 25-year-old Hong Kong trader on a yacht.

On November 29, the two parties signed a contract. Orlen's Swiss subsidiary agreed to purchase 6 million barrels of Venezuela's low-sulfur medium crude Merey 16 for $345 million.

The company wired $230 million within five days without collateral or bank guarantees.

Due to U.S. sanctions, Venezuela's state oil company PDVSA was blocked from dollar payment systems. The funds were converted into USDT tokens and transferred via a Dubai intermediary.

Over $132 million in USDT was delivered through USB drives at Caracas hotels and restaurants. When $135 million was exchanged, only $85 million remained, with $50 million tied up in an UAE court.

This method is not new; BeInCrypto reported in April 2024 that Venezuela has been using Tether (USDT) to move oil funds.

Several tankers waited offshore in Venezuela for months. The empty ships either departed or headed elsewhere, with shipping costs totaling around $72 million.

PDVSA stated it received no payments at all.

On August 7, Warsaw prosecutors charged three former executives with failing to protect company assets worth 1.5 billion zloty (approximately $378 million), potentially facing up to 25 years in prison.