Pecohub Poland’s state-controlled energy group Orlen lost $230 million in an advance payment for Venezuelan crude after a complex oil transaction involving cryptocurrency and multiple intermediaries collapsed.
The deal was signed in November 2023 by Orlen Trading Switzerland (OTS), a Swiss subsidiary of Orlen, after its executives encountered representatives of Dubai-based Hannon International during the Formula 1 weekend in Abu Dhabi.
OTS agreed to purchase approximately six million barrels of Venezuela’s Merey 16 crude for about $345 million. The Polish company paid a $230 million advance within days of signing the contract. (Oninvest)
The transaction subsequently became entangled in a network of intermediaries and cryptocurrency payments. Venezuela’s state oil company, PDVSA, had increasingly used Tether’s USDT stablecoin for oil transactions as sanctions restricted conventional dollar-based payment channels.
According to reporting based on the Financial Times investigation, funds from the Polish transaction were converted into USDT through intermediaries in Dubai. Some of the cryptocurrency was subsequently transferred to brokers in Caracas, with physical USB devices reportedly being used to provide access to cryptocurrency wallets.
In one transaction, Hannon said it transferred $135 million to Dubai-based Horizon Global but received only $85 million in USDT, leaving a disputed $50 million shortfall. Another $30 million was reportedly sent to Gold Mar International Trading for conversion into USDT and onward payment for the Venezuelan oil. (CT)
Meanwhile, the promised oil failed to materialise as expected. Orlen had arranged tankers to collect the Venezuelan crude, but the vessels reportedly remained waiting offshore after PDVSA did not receive the required payment for the cargoes. Reuters previously reported that the tankers eventually left without the expected oil. (Reuters)
By March 2024, one Orlen vessel was loaded with roughly 500,000 barrels of fuel oil valued at about $28.8 million—far below the six million barrels covered by the original agreement. OTS terminated the contract later that month. (Tapbit)
The failed transaction has since become part of a broader investigation in Poland into oil contracts involving Orlen’s trading operations. Polish prosecutors have examined the movement of funds, including cryptocurrency purchases connected with the transactions.
Three former Orlen managers were reportedly indicted in August 2026 in connection with broader losses estimated at about 1.5 billion zlotys, or roughly $378 million. The former executives have denied wrongdoing. (Crypto Economy)
The episode has drawn renewed attention to the risks surrounding large commodity transactions conducted through unfamiliar intermediaries, particularly when conventional banking channels are restricted and cryptocurrency is used for settlement.
