Orlen faces massive losses in failed Venezuelan oil deal using cryptocurrency

Orlen Trading Switzerland (OTS) suffered massive losses following failed attempts to purchase Venezuelan crude oil. According to reports from the Financial Times, OTS paid approximately $230 million in advances to Hannon International, a Dubai-based firm, for a deal involving roughly 6 million barrels of oil. To bypass sanctions, the transactions reportedly utilized the cryptocurrency USDT (Tether).

The crude oil never arrived in Poland, and the Venezuelan state-owned company PDVSA did not receive the payments. Instead, intermediaries allegedly seized the funds. The failed deal also resulted in significant costs for idle tankers waiting for cargo. While Orlen received a smaller amount of fuel oil worth $28.8 million, the primary oil shipment was never realized.

Legal consequences are mounting. Polish prosecutors have filed charges against three former Orlen executives and officials from its Swiss subsidiary. They face allegations of failing to properly oversee asset protection, leading to unfavorable contracts totaling approximately $378 million (1.5 billion PLN). The defendants could face up to 25 years in prison. Orlen is currently pursuing arbitration to recover the lost funds, though it estimates the chance of success at only 10 percent.