USDT payments feature in Polish energy giant’s failed $230M oil deal: FT
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Poland’s largest energy company, Orlen, lost $230 million in a failed Venezuelan oil deal in late 2023 involving Tether’s stablecoin USDT, as reported by the Financial Times. The Caracas-based oil company PDVSA demanded partial payments in USDT to bypass US sanctions. Orlen advanced most of the payment in USDT through the Dubai-based seller Hannon International Middle East but only received about $29 million worth of oil before terminating the contract.
Why it matters
This case highlights challenges and risks associated with using stablecoins like USDT in international commodity trades, particularly where financial sanctions are involved. The source implies issues with crypto intermediaries and missing funds complicate such transactions, but it does not explicitly discuss the broader market or policy impact.
Key context
PDVSA began requiring USDT payments as a sanction workaround. Hannon, appointed by Orlen, handled crypto conversions and transfers but many funds became lost or stuck in complex transfers. In March 2024, Orlen received only a fraction of the contracted oil and later terminated the deal. Polish authorities have launched investigations, and former Orlen managers were indicted for damages related to crude oil contracts totaling $378 million.
Key numbers and entities
Orlen (Poland’s largest energy company), PDVSA (Venezuelan state oil company), Hannon International Middle East (Dubai-based seller), Tether (issuer of USDT). $230 million was the advanced payment, with about $29 million worth of oil delivered. The prosecution alleges damages of 1.5 billion Polish zloty ($378 million). Three former Orlen executives face up to 25 years in prison.
What remains unclear
Details about how and why most of the USDT funds disappeared remain unresolved, as the intermediaries involved contest claims, and the investigation outcomes are pending. The exact role of crypto brokers and the legal responsibility for the transaction failure are not fully established. The source does not provide comments from Tether or Orlen.