Poland lost $230m in cryptocurrency trying to buy Venezuelan oil in 2023 — USB drives with crypto handed directly to scammers

The country of Venezuela has had a few embattled decades, but it has massive oil reserves continually attracting buyers, despite the U.S.-led sanctions that effectively block dealings with the nation. A few years back, in 2023, Poland's state-backed Orlen energy group had $600m in hand and was looking to buy 6 million barrels during a sanction reprieve. Like many before him, one executive thought it expedient to use the USDT stablecoin cryptocurrency (1 USD = 1 USDT). It didn't end well, with $230 million worth of crypto unaccounted for at multiple stages in an adventure chronicled by the Financial Times.

The twisted web of transactions

Orleen enlisted an external company, Hannon, to take care of the purchase, which it did by enlisting the services of UK firm Lexcor Energy, which supposedly had a Venezuelan office. Hannon first needed to convert a large sum into USDT, and did so by exchanging $245m at multiple Dubai companies, adding $15m of its own to the deal. Only one of multiple transfers of $80m into 80m USDT was fully successful.

As for the other two, $135m exchange only produced 85m USDT out the other end, with $50m still unaccounted for. A third exchange of $30m also vanished (partially returning much later). The proverbial PNL is currently -$80m, and Hannon has 165m USDT in hand. All this while, three Polish oil tankers headed to Venezuela anchored there, continually racking up millions in demurrage and port fees, as they were being chartered for far longer than initially agreed.