$230M Failed Oil Deal: Polish Energy Giant Loses Funds in Venezuelan Crude Trade Using USDT Payments
Tether’s USDt, the world’s largest stablecoin by market capitalization, unexpectedly featured in a $230 million failed Venezuelan crude oil deal causing significant losses for Poland’s energy giant Orlen at the end of 2023. The purchase from Venezuela’s state oil company PDVSA involved partial payments in USDT as a circumventing mechanism against US sanctions. However, much of the transferred funds vanished through a complex web of cryptocurrency transfers. Orlen eventually received only about $29 million worth of oil before terminating the contract after protracted legal disputes.
Background of the Deal and Use of USDT
In November 2023, Poland’s state-controlled energy company Orlen, through its trading subsidiary Orlen Trading Switzerland (OTS), arranged to purchase 6 million barrels of Venezuelan crude oil from the state oil firm PDVSA. Due to U.S. sanctions, PDVSA started requiring partial payments in the stablecoin Tether USDt (USDT), creating an unusual payment structure for such a large oil transaction.
According to the Financial Times, Orlen sent a $230 million advance in December 2023 to Hannon International Middle East, a Dubai-based seller responsible for converting funds into USDT to facilitate the oil purchase.
Complexities and Disappearance of Funds in Crypto Transfers
Hannon needed to source USDT through various crypto brokers and intermediaries. Although it reportedly obtained $80 million USDT, paying a $400,000 commission, payments soon became convoluted. The Dubai-based Horizon Global was said to have received $135 million USDT, but it claims it only got $85 million, creating a $50 million gap.
Hannon also sent $30 million to Gold Mar International Trading, another Dubai-incorporated entity, yet later recovered only $21 million USDT. Employees of Hannon handed USB sticks containing tens of millions in USDT to brokers in Caracas. Ultimately, by March 2024, Orlen’s shipment contained just about 500,000 barrels of fuel oil worth approximately $28.8 million, a fraction of what was paid for.
Legal Investigation and Aftermath
Following the loss, the Warsaw Regional Prosecutor’s Office launched an investigation into Orlen Trading Services’ oil contracts, with total damages estimated at around $378 million. By January 2025, official criminal proceedings were underway, and in August 2026, three former executives of Orlen and OTS were indicted with charges linked to the contracts causing these losses.
The accused deny wrongdoing and face potential prison sentences of up to 25 years. Legal representatives for Hannon stated the company is not involved in the Polish investigation and does not bear responsibility for the contract failure. Orlen confirmed the $230 million was merely an advance payment.
Why it matters
This case starkly highlights the significant legal and financial risks when employing cryptocurrencies and stablecoins like Tether USDt in international oil transactions. Under the pressure of sanctions and financial restrictions, corporations may attempt to circumvent ordinary payment channels with digital assets, but such approaches introduce opacity and the danger of funds disappearing within complex crypto networks. The incident underscores the critical necessity for rigorous legal frameworks and thorough due diligence on all involved parties, particularly where unconventional financial instruments are leveraged.
Prepared from the source material with AI-assisted editing and checked against the supplied facts.
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