Poland's state-controlled energy giant Orlen lost $230 million in a failed Venezuelan oil trade that involved payments made largely in Tether's USDT stablecoin, according to reporting by the Financial Times.
The transaction occurred after PDVSA, Venezuela's state oil company, began requesting partial payments in USDT as a means to circumvent U.S. financial sanctions. In November 2023, Orlen arranged to purchase 6 million barrels of Venezuelan crude oil from PDVSA through a deal orchestrated by Samer Awad, a former executive at Orlen Trading Switzerland, a trading subsidiary of the energy company.
Orlen sent the $230 million advance payment to Hannon International Middle East, a Dubai-based seller, on December 4, 2023. Hannon then approached cryptocurrency brokers and intermediaries to obtain the USDT needed to purchase the crude oil. However, most of the funds became trapped in a complex series of cryptocurrency transfers, and Orlen received only approximately $29 million worth of oil before terminating the contract.
Tracing Cryptocurrency Transfers
The transfer of funds through multiple intermediaries created significant losses. Hannon obtained $80 million in USDT from a Dubai-based financial services company while paying a $400,000 commission. The company then sent $135 million to Horizon Global but claimed to have received only $85 million in USDT, a $50 million shortfall. Horizon Global has contested these claims.
Hannon also transferred $30 million to Dubai-incorporated Gold Mar International Trading for expected USDT conversion and onward payment to PDVSA, later recovering $21 million in USDT from that company in February 2024.
In January 2024, Hannon employees delivered two USB drives containing $60 million and $50 million in USDT to a Caracas broker. The following month, access to an additional $11 million in USDT was provided to another Caracas broker.
Partial Delivery and Contract Termination
On March 8, 2024, Orlen's ship was loaded with approximately 500,000 barrels of fuel oil valued at roughly $28.8 million. On the same day, another $11 million in USDT was allegedly handed to the broker. Orlen Trading Services terminated its contract with Hannon on March 28, 2024, after receiving only a fraction of the initially ordered crude oil.
Investigation and Legal Action
In January 2025, Poland's Warsaw Regional Prosecutor's Office announced an investigation into oil contracts related to Orlen Trading Services, investigating damages totaling 1.5 billion Polish zloty ($378 million).
In August 2026, three former managers at Orlen and Orlen Trading Services were indicted in connection with crude oil contracts that caused $378 million in damages. 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 both Orlen and OTS, each face up to 25 years in prison. All three have denied wrongdoing.
David McCoy, managing partner at ADG Legal Abu Dhabi and legal representative of Hannon, stated that Hannon was not responsible for the transaction's failure and that the company has taken steps to recover the funds while remaining open to resolving the matter with Orlen.
