How Poland's $424 Million Venezuela Oil Deal Went Wrong After USDT Payments
On January 5, 2024, a man walked into the Hotel El Avila in Caracas Venezuela carrying a USB stick. On it sat about $60 million in Tether (USDT). The money came from Poland's state-controlled refiner. The oil it paid for never arrived.
According to the Financial Times, Poland's state refiner Orlen lost roughly $424 million, and three of its former managers are now facing criminal charges.
A Deal Struck on a Yacht
It started in Abu Dhabi in November 2023, during the Formula 1 weekend. The head of Orlen Trading Switzerland met a 25-year-old Hong Kong trader on a yacht.
On November 29 they signed. Orlen's Swiss unit would buy 6 million barrels of Merey 16, Venezuela's cheap heavy crude, for $345 million.
Within five days it wired $230 million. No collateral. No bank guarantee.
The Money Became a Token
US sanctions had locked Venezuela's state oil firm PDVSA out of the dollar banking system. So the cash was swapped into USDT, a digital token pegged to the dollar, and pushed through brokers in Dubai.
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