Poland's Orlen Subsidiary Failed to Recover $230 Million Payment for Venezuelan Oil Purchase via USDT

Poland's state-owned energy company Orlen's Swiss subsidiary reportedly failed to recover a $23 million advance payment after attempting to purchase Venezuelan oil using cryptocurrency. According to the Financial Times, Orlen Trading Switzerland (OTS) signed a contract in November 2023 with Dubai-based Hannon International for approximately 6 million barrels of Venezuelan Merey 16 crude at $345 million. OTS paid $23 million to Hannon within five days of signing. Facing difficulties using traditional payment methods due to U.S. sanctions on Venezuela's state oil company PDVSA, the buyer requested USDT, a dollar-pegged stablecoin. Hannon attempted to convert funds through multiple intermediaries into USDT but most oil was never delivered. Orlen is currently pursuing arbitration to recover the advance.