Tether’s USDt at Center of Failed Venezuelan Oil Trade, Costing Polish Giant $230 Million

In a significant financial fallout that underscores the complexities and risks of cryptocurrency adoption in international trade, Poland’s largest energy firm, Orlen, reportedly incurred a staggering $230 million loss in late 2023 due to a failed Venezuelan oil transaction. The Financial Times has revealed that Tether’s USDt, the world’s largest stablecoin by market capitalization, played a pivotal role in this ill-fated deal.

The situation arose as Venezuela’s state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA), began demanding partial payments in USDt. This strategic move by PDVSA was an attempt to circumvent stringent United States financial sanctions that have historically hampered the nation’s oil exports and its access to traditional banking channels.

The $230 million in question was an advance payment, largely settled in USDt, for a deal to acquire six million barrels of Venezuelan crude oil in November 2023. The transaction was reportedly orchestrated by Samer Awad, a former executive at Orlen Trading Switzerland (OTS), a trading subsidiary of the Polish state-controlled energy giant Orlen. The oil was to be purchased from PDVSA.

On December 4, 2023, Orlen dispatched the substantial advance payment to Hannon International Middle East, a Dubai-based entity acting as the seller in this complex arrangement. Following the receipt of funds, Hannon reportedly engaged with various crypto brokers and intermediaries to procure the necessary USDt to finalize the oil purchase. However, the process quickly devolved into a labyrinth of cryptocurrency transfers, with a significant portion of the funds allegedly disappearing without securing the intended crude oil. Ultimately, Orlen received only approximately $29 million worth of oil before the contract was terminated.

Cointelegraph has reached out to both Tether and Orlen for official comments on the matter.

David McCoy, managing partner at ADG Legal Abu Dhabi, representing Hannon, stated to Cointelegraph that Hannon became involved in the transaction at Orlen’s request and therefore should not be held responsible for its ultimate failure. McCoy emphasized that Hannon has since undertaken considerable efforts, at its own expense, to recover the funds associated with the transaction and remains open to constructive dialogue with Orlen to achieve an amicable resolution.

Tracing the Disappearance of $230 Million Through Crypto Intermediaries

The intricate financial flows that led to Orlen’s substantial loss reveal a complex web of cryptocurrency transactions. After Orlen wired the $230 million in December 2023, Hannon reportedly acquired $80 million in USDt from a Dubai-based financial services firm with whom they had prior dealings, incurring a commission of $400,000 for this transaction.

Subsequently, Hannon transferred $135 million to Horizon Global, a Dubai-based company. However, Hannon claims it only received $85 million in USDt from this transfer, resulting in a $50 million shortfall. Horizon Global has reportedly contested these assertions.

Further complicating the chain, Hannon stated that it sent $30 million to Gold Mar International Trading, a Dubai-incorporated entity, with the expectation of a USDt conversion and subsequent onward payment to PDVSA for the crude oil. Hannon later reported recovering $21 million worth of USDt from Gold Mar in February 2024.

The trail of missing funds continued in January 2024, when Hannon employees reportedly provided two USB drives, each containing $60 million and $50 million in USDt respectively, to a broker based in Caracas. The following month, access to an additional $11 million in USDt was reportedly granted to another Caracas-based broker.

The physical receipt of oil was critically delayed. On March 8, Orlen’s vessel was finally loaded with approximately 500,000 barrels of fuel oil, a shipment valued at only about $28.8 million. On the same day, an additional $11 million in USDt was allegedly handed over to the broker. Frustrated by the minimal delivery, Orlen Trading Services formally terminated its contract with Hannon on March 28, 2024, having received only a fraction of the contracted crude oil.

The repercussions of this failed deal extended to official investigations. In January 2025, the Warsaw Regional Prosecutor’s Office announced an investigation into oil contracts linked to Orlen Trading Services, citing alleged damages amounting to 1.5 billion Polish zloty (approximately $378 million). David McCoy, representing Hannon, informed Cointelegraph that Hannon is not involved in the Polish investigation and therefore cannot comment on it.

More recently, in August 2026, reports emerged from Reuters detailing the indictment of three former managers at Orlen and Orlen Trading Services. These individuals are facing charges related to crude oil contracts that allegedly caused $378 million in damages. Identified by their last initials under Polish privacy laws, the trio—Michal R., a former member of Orlen’s management board; Marcin O., a former member of OTS’s board; and Filip W., a former executive at both Orlen and OTS—have all denied any wrongdoing. They face potential prison sentences of up to 25 years.