Poland's state-controlled energy group Orlen lost roughly $230 million advancing funds for a Venezuelan crude oil purchase that relied on Tether's USDT to move payment outside the conventional banking system, according to a Financial Times investigation published yesterday.
The deal has since become one of Poland's largest corporate scandals, with Warsaw prosecutors charging former executives at Orlen Trading Switzerland (OTS) with criminal mismanagement.
The FT reports that OTS chief executive Samer Awad instructed a trader named Kam Ho "Alex" Tse in late 2023 to "go out and get me Venezuelan oil," during a brief window when Washington had eased sanctions on Venezuela's state oil company, PDVSA. PDVSA had grown accustomed to demanding advance payment in USDT to work around sanctioned banking channels, and OTS signed a $345 million contract with Tse's trading firm, Hannon International, for roughly 6 million barrels of crude, wiring $230 million within days.
What followed, per the FT's reporting, was a chain of intermediaries in Dubai and Caracas meant to convert that money into USDT and route it to PDVSA. Hannon says it lost a further $50 million to a Dubai firm called Horizon Global in a shortfall now under litigation, while other funds passed through companies called Gold Mar International and Lexcor Energy, the latter run by a man who claimed to be PDVSA's nominated agent. When conventional intermediaries stalled, Hannon's own staff flew to Caracas, carrying USB sticks loaded with tens of millions of dollars in USDT and hiring an armored car over kidnapping fears, and handed the drives to local brokers at hotels and restaurants in exchange for promises of oil that mostly never arrived.
Only a fraction of the contracted cargo was ever delivered: a single fuel oil shipment worth $28.8 million, against $230 million advanced and $600 million in total trading capital OTS had been given to diversify Poland away from Russian crude. The Polish government now estimates Orlen's total losses, including shipping and legal costs, at roughly PLN 1.6 billion, or $424 million.
Prime Minister Donald Tusk has tied the episode to a broader inquiry into state company governance, saying, per the FT, that "Poles must learn the truth." Awad was briefly detained in the UAE on an Interpol notice in January 2025 before Emirati courts rejected Poland's extradition request. The dispute between Orlen and Hannon is now in arbitration, with Hannon's lawyer telling the FT the firm remains open to a negotiated resolution.
The case lands amid a broader pattern of PDVSA leaning on USDT to keep Venezuelan oil revenue flowing despite sanctions. Blockchain analysts estimate that the bulk of Venezuela's oil trade now settles in stablecoins on the Tron network rather than through dollar-clearing banks, and Tether itself froze $182 million in USDT across five wallets in January 2026 in what it described as sanctions-related compliance action; blockchain analysts, though not Tether itself, have tied the freeze to Venezuela's oil trade. The Orlen episode shows the operational risk on the other side of that arrangement: a European state company that hired an unregulated stablecoin settlement chain to buy sanctioned crude ended up with a fraction of its oil and a $230 million hole that two years of arbitration have yet to fill.