The world’s largest stablecoin by market cap, Tether’s USDt, was reportedly used in a failed Venezuelan oil trade that cost Poland’s largest energy giant $230 million in late 2023, according to the Financial Times.
That was after the Caracas-based state oil company, PDVSA, began demanding partial payments in USDT as a workaround to US financial sanctions.
The $230 million was an advance payment paid largely in Tether USDt (USDT) in an oil trade orchestrated by Samer Awad, a former executive at Orlen Trading Switzerland (OTS), a trading subsidiary of Poland’s state-controlled energy giant, Orlen, to acquire 6 million barrels of Venezuelan crude oil in November 2023 from state-owned PDVSA, the news outlet reported on Tuesday.
Orlen sent the $230 million advance payment to Hannon International Middle East, the Dubai-based seller, on Dec. 4, 2023. Hannon approached various crypto brokers and intermediaries to obtain the USDT necessary to buy the crude oil, but most funds disappeared into a maze of crypto transfers, while Orlen only received about $29 million worth of oil before eventually terminating the contract.
Cointelegraph has approached Tether and Orlen for comment on the matter.
“Hannon became involved in the transaction at Orlen’s request” and was not responsible for the “transaction’s failure,” David McCoy, managing partner at ADG Legal Abu Dhabi, the legal representative of Hannon, told Cointelegraph.
“Hannon has since taken significant steps, at its own expense, to recover the funds paid in connection with the transaction and remains open to a constructive dialogue with Orlen about resolving this matter amicably.”
Payment flows that led to the $230 million loss. Source: Financial Times
Tracing missing $230 million through crypto intermediaries
After Orlen wired the $230 million in December 2023, Hannon reportedly obtained $80 million USDT, paying a $400,000 commission, from a Dubai-based financial services company he previously dealt with.
Hannon later sent Dubai-based Horizon Global $135 million, but claimed it only received $85 million in USDT, leaving a $50 million shortfall. Horizon has contested these claims.
Hannon also said it sent Dubai-incorporated Gold Mar International Trading $30 million, expecting a USDT conversion and onward payment for the oil to PDVSA. Hannon said it later recovered $21 million of the USDT from Gold Mar in February 2024.
In January 2024, Hannon employees reportedly gave a Caracas broker two USB sticks, containing $60 million and $50 million USDT, respectively. The next month, it gave access to $11 million in USDT to another Caracas broker.
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On March 8, Orlen’s ship was finally loaded with about 500,000 barrels of fuel oil, worth only about $28.8 million. The same day, another $11 million in USDT was allegedly handed to the broker. Orlen Trading Services finally terminated the contract with Hannon on March 28, 2024, after only receiving a fraction of the crude oil.
In January 2025, the Warsaw Regional Prosecutor’s Office announced an investigation into the oil contracts related to Orlen Trading Services, for damages of 1.5 billion Polish zloty ($378 million).
McCoy told Cointelegraph that Hannon “is not involved in the investigation in Poland and therefore cannot comment on it.”
In August 2026, three former managers at Orlen and Orlen Trading Services were reportedly indicted over crude oil contracts that caused $378 million in damages, according to Reuters. The managers, identified under Polish privacy laws by last initial, have all denied wrongdoing. The trio, Michal R., a former member of Orlen’s management board, Marcin O., a former member of OTS’ board, and Filip W, a former executive at Orlen and OTS, face up to 25 years in prison.
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