Key facts
- Tether's USDT stablecoin was reportedly used in a failed oil trade that cost Poland's Orlen $230 million in late 2023.
- The deal involved acquiring 6 million barrels of Venezuelan crude oil from PDVSA.
- PDVSA began demanding partial payments in USDT as a workaround to US financial sanctions.
- Orlen paid $230 million largely in USDT to Hannon International Middle East, the seller, on December 4, 2023.
- Most of the funds disappeared through crypto intermediaries, with Orlen receiving only about $29 million worth of oil.
- Hannon International Middle East claims it is working to recover the funds and is open to dialogue with Orlen.
Tether's USDT stablecoin was reportedly involved in a failed oil trade that resulted in a $230 million loss for Poland's largest energy company, Orlen, in late 2023. The deal, aimed at acquiring 6 million barrels of Venezuelan crude oil from the state-owned company PDVSA, collapsed after PDVSA began demanding partial payments in USDT to circumvent US financial sanctions.
Orlen paid the $230 million advance, largely in USDT, to Dubai-based seller Hannon International Middle East on December 4, 2023. However, the funds were allegedly lost in a complex web of cryptocurrency transfers through various intermediaries. Orlen ultimately received only about $29 million worth of oil before terminating the contract.
Hannon International Middle East, represented by ADG Legal Abu Dhabi, stated that it was involved at Orlen's request and is not responsible for the transaction's failure. The firm claims to be taking steps to recover the funds and is open to dialogue with Orlen.
According to reports, Hannon obtained $80 million USDT and sent $135 million to Horizon Global, which contested claims of a $50 million shortfall. Another $30 million was sent to Gold Mar International Trading, from which $21 million was later recovered. Further USDT transfers were made to Caracas brokers, totaling $111 million.
Orlen's ship was eventually loaded with approximately 500,000 barrels of fuel oil, valued at about $28.8 million, on March 8, 2024. Orlen Trading Services officially terminated the contract with Hannon on March 28, 2024.
In January 2025, the Warsaw Regional Prosecutor’s Office launched an investigation into the oil contracts, citing damages of 1.5 billion Polish zloty ($378 million). In August 2026, three former Orlen and Orlen Trading Services managers were indicted over crude oil contracts causing $378 million in damages, with all denying wrongdoing.