Venezuela's state oil company relied on Tether (USDT) to circumvent US sanctions before Nicolás Maduro's January 3 arrest.
Petróleos de Venezuela (PDVSA) used USDT to settle crude transactions while the stablecoin provided Venezuelans relief from hyperinflation, The Wall Street Journal reported.
Tether emphasized its cooperation with US authorities following the report.
What Happened
The WSJ investigation revealed PDVSA adopted USDT for oil transactions to sidestep sanctions blocking dollar banking access.
By early 2024, PDVSA required clients to maintain crypto wallets and mandated USDT prepayments for deals.
PDVSA sold oil to Chinese refineries with payments processed through intermediaries using USDT.
A Tether spokesperson stated the company works closely with the Office of Foreign Assets Control and regularly assists law enforcement freezing addresses linked to sanctions violations.
Tether had frozen 41 Venezuela-related wallets by 2024, according to Atlantic Council research.
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Why It Matters
The revelation highlights cryptocurrency's role enabling sanctioned regimes to access global finance.
USDT became Venezuela's economic lifeline amid bolivar hyperinflation exceeding 270% annually.
By November 2025, cryptocurrency accounted for approximately 10% of Venezuelan grocery payments.
US authorities captured Maduro on January 3, 2026, and he now faces narco-terrorism charges in New York.
Venezuela sanctions remain active despite Maduro's removal, with OFAC maintaining restrictions on PDVSA pending policy changes.
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